Ohio Bankruptcy Exemptions

When filing for bankruptcy, your biggest fear is likely what property will you be able to retain and what must you give up. This is understandable and quite honestly one of the largest myths about Ohio bankruptcy–that you lose everything. But that cannot be further from the truth. Learn more about the Ohio bankruptcy exemptions below.

What is a bankruptcy exemption?

Bankruptcy exemptions are laws that allow you to retain and protect some of your assets in a Chapter 7 bankruptcy filing. Bankruptcy exemptions are part of the Federal Bankruptcy Code as well as state bankruptcy laws. It is important to know that each state determines if you can utilize the federal bankruptcy exemptions or state. In Ohio, state bankruptcy exemptions are permitted.

Ohio Bankruptcy Exemptions

The following are the most common Ohio Bankruptcy Exemptions:

• Homestead Exemption: $145,425 of equity in one parcel of real or personal property that you or your dependent uses as a residence–this includes home, manufactured, or mobile homes
• Personal Property: $500 of cash on hand or deposit; $4,000 of value in one motor vehicle; $13,400 of value in household goods; $1,700 of value in jewelry; interest in one burial plot; and $25,175 of value in a personal injury award received within 12 months of the bankruptcy filing
• Wages: 75% of wages
• Pensions: Private pensions; Tax-exempt retirement accounts, including 401(k), 403(b), and profit-sharing plans; IRAS and Roth IRAs; and state teacher retirement system
• Public Benefits: Crime victim’s compensation received during 12 months before filing; disability assistance payments; earned income tax credit and child tax credit; unemployment compensation benefits; vocational rehabilitation benefits; workers’ compensation benefits
• Wildcard: $1,325 of value in any property
• Support: Spousal or child support, to the extent reasonably necessary for the support
• Tools of the Trade: $2,550 of value in implements, books, and tools of your trade, occupation, or business
• Miscellaneous: 529 savings plans, $5,000 in benevolent society death benefits

It is important to know that Ohio updates its Bankruptcy Exemptions every three years with the next update to take place in April 2022. In addition, married couples in Ohio who file jointly can double the exemption amount. This means that they each can claim the full exemption amount for any property belonging to them.

Ohio Bankruptcy Exemptions and Chapter 7, Chapter 13 Bankruptcy

If you qualify for Chapter 7 bankruptcy, your bankruptcy trustee will assess the value of your property to determine what property is exempt under Ohio bankruptcy exemptions. From there, the non-exempt property will be used to pay back some creditors.

If however, you qualify for Chapter 13 bankruptcy, your lawyer will help you work out a payment plan with your creditors. Asset exemptions are used to determine what you can afford to pay back to creditors in Chapter 13 bankruptcy.

Ohio Bankruptcy Exemptions: The Jones Law Firm

If the fear of losing everything has held you back from filing for bankruptcy, you need to call The Jones Law Firm. Our Ohio bankruptcy attorney, Michael Ryan Jones, will work with you to see what bankruptcy exemptions you qualify for or if filing for Chapter 13 is the better option instead.

Don’t give up on a financial restart. Contact the Columbus, Ohio bankruptcy firm today.