For those filing Ohio bankruptcy, you must use Ohio’s state bankruptcy exemptions; you cannot use the exemptions established by federal law. The good news is that Ohio offers a much more generous homestead exemption, an exemption you apply to your personal residence, at $136,925 versus the Federal exemption which covers only $23,675. Ohio also offers a slightly higher exemption amount for books and tools necessary to your profession at $2,400. When discussing personal property exemptions that protect your personal belongings, Ohio bankruptcy exemptions mirror many of the federal exemptions such as with the following exemptions:
- $3,775 for your motor vehicle,
- $1600 for your jewelry,
- And $12,625 for household goods
Other Ohio bankruptcy exemptions cover things such as 75% of your wages, your private pensions, tax exempt retirement accounts, IRAs, and state teacher retirement payouts. Furthermore, Ohio bankruptcy laws offer protection of disability payments, child tax credits, unemployment benefits, vocational rehabilitation benefits, and worker’s compensation benefits.
What Happens to Non-Exempt Property in Bankruptcy?
If you own property, either real or personal, that exceeds the value of the allowable exemptions, then what happens to that property depends on which type of bankruptcy you file. In a Chapter 7 bankruptcy, any property you own that is not exempt is sold by the bankruptcy trustee in order to liquidate your property to pay back your creditors. In a Chapter 13 bankruptcy, non-exempt property is calculated into your monthly chapter 13 repayment amount.
Working with an experienced bankruptcy attorney is the best way to ensure that you utilize the maximum amount of your Ohio bankruptcy exemptions and keep the most property. On a positive note, if you don’t want to lose your property, a good bankruptcy lawyer can help you keep what you want. If you are struggling with debt you can’t payback, there is help available. By filing for bankruptcy in Ohio, you can stop repossessions and foreclosures, discharge unsecured debt, and get back onto a positive financial footing.