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.
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.
The following are the most common Ohio Bankruptcy Exemptions:
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.
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.
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.