In the year 2023 alone, 21,140 bankruptcies were filed in Ohio. [1] Facing bankruptcy can be one of the most challenging experiences in a person’s life. It brings feelings of anxiety and uncertainty, not only about the future but also about the fate of one’s assets. That’s why it’s essential to have a solid strategy in place to safeguard your property while pursuing debt relief.
Ohio Bankruptcy Exemptions - Protecting Your Assets
When facing bankruptcy, one of the most valuable aspects to understand is the concept of exemptions. Exemptions allow you to protect certain assets from being liquidated or seized during the bankruptcy process, enabling you to retain your property.

Ohio Homestead Exemption
The homestead exemption in Ohio allows homeowners to exempt a portion of their home’s equity during bankruptcy proceedings, helping them retain their primary residence. The law that governs home exemptions is the Ohio Rev. Code § 2329.66.
Max Homestead Exemption Amount: $161,375
For eligible homeowners, this exemption protects a set amount of appraised value from liquidation, making it a valuable tool for preserving assets.
The homestead exemption is especially beneficial for seniors, disabled individuals, and military veterans for several key reasons:
Seniors
- Fixed Incomes: Many seniors rely on fixed incomes, making it crucial to protect their home equity to avoid financial strain.
- Health Care Costs: As medical expenses rise, the exemption allows seniors to preserve funds for necessary care without selling their homes.
- Stability: Moving becomes more difficult as people age, and the homestead exemption prevents a senior from needing to move.
Disabled Individuals
- Higher Living Expenses: Disabled individuals often face increased costs for medical care and assistive devices. The exemption helps protect their financial resources.
- Housing Security: The homestead exemption ensures disabled individuals maintain a stable living environment.
Military Veterans
- Service-Related Challenges: Many veterans experience difficulties due to service-related injuries. The homestead exemption serves as a safety net for them.
- Family Stability: It supports veterans in providing a secure home for their families during challenging times.

Ohio Motor Vehicle Exemption
In Ohio, individuals facing bankruptcy can exempt up to $4,450 in equity for one vehicle, helping protect essential transportation. (Ohio Rev. Code Ann. 2329.66(A)(2).) If the vehicle is financed, additional requirements must be met to maintain this exemption.
Personal Property Exemptions Ohio
Ohio law provides several personal property exemptions that allow individuals facing bankruptcy to protect essential assets. These exemptions include up to $550 in cash, household goods valued up to $14,875 (with a maximum of $700 per item), and jewelry valued at up to $1,875. Individuals can exempt one burial lot and personal injury awards received within a year before filing, up to $27,950.
There are also provisions for implements, tools, and books related to one’s trade or business, allowing exemptions up to $2,825. Furthermore, 75% of wages are exempt, ensuring that individuals can retain a portion of their income during bankruptcy proceedings.
Ohio Wage and Pension Exemptions
A portion of your income and most of your retirement savings may be exempt from being used to repay debts in bankruptcy. Under Ohio law, a percentage of your disposable income is protected, recognizing that funds necessary for living expenses are essential. The following retirement savings are exempt:
- IRAs and Roth IRAs
- Private pension plans
- 401(k) accounts and similar retirement savings
However, not all of your income or savings will be fully exempt. Depending on the chapter of bankruptcy you file, some of your income or available funds may be allocated to a repayment plan.
Miscellaneous Exemptions
Here’s a list of additional exemptions in Ohio:
- 529 Savings Plans
- Death Benefits from Benevolent Societies
- Crime Victim's Compensation
- Disability Assistance
- Earned Income Tax Credits
- Child Tax Credits
- Unemployment Benefits
- Vocational Rehabilitation Benefits
- Workers' Compensation Benefits

Strategies for Protecting Assets in Ohio
Effective asset protection during bankruptcy involves several key strategies.
Pre-Bankruptcy Planning
- Evaluating asset ownership: Assess what assets you own and their value.
- Transferring non-exempt assets: Safeguard valuable property by transferring non-exempt assets to protect them from creditors.
- Establishing trusts: Use trusts to shield assets and provide additional protection.
Utilizing Exemptions Effectively
- Maximizing all available exemptions: Take full advantage of all exemptions to protect your assets.
- Keeping necessary documentation for exemptions: Maintain records to support your exemption claims during bankruptcy.
Consulting with Legal and Financial Professionals
- Importance of hiring a bankruptcy attorney: A knowledgeable bankruptcy attorney can guide you regarding how to preserve your assets best as you file bankruptcy.
- Working with a financial advisor to create a strategy: Collaborate with a financial counselor to develop a comprehensive asset protection plan.

Consequences of Exemption Mistakes in Ohio
Most trustees will likely attempt to resolve any exemption issues informally during the 341 meeting of creditors or through direct communication. The trustee will file a motion with the bankruptcy court if an agreement cannot be reached. Avoid misrepresenting information on your bankruptcy forms, as doing so could be considered bankruptcy fraud, leading to severe penalties.
If you need help with bankruptcy and asset protection in Ohio, contact Richard West today for a free consultation.
FAQs
If you have property that isn’t exempt, the outcome depends on whether you file for Chapter 7 or Chapter 13. In Chapter 7, the bankruptcy trustee will sell non-exempt assets and distribute the proceeds to creditors. In Chapter 13, you can keep your property by paying the value of the non-exempt items to unsecured creditors as part of your repayment plan.
Chapter 7 is designed for those unable to repay debts, while Chapter 13 is for individuals who earn too much to qualify for Chapter 7 and require a repayment plan lasting three to five years. A means test is conducted to determine which chapter you can file under. Sometimes, those eligible for Chapter 7 choose Chapter 13 to avoid foreclosure or repossession, allowing them to catch up on missed payments.
Chapter 7 cases typically wrap up within four months, though some may take longer if there are property sales or disputes. Chapter 13 cases generally last between three to five years as debtors work through their repayment plans.
To file for bankruptcy in Ohio, you must have lived there for at least 180 days. However, to use Ohio’s exemptions, you need to reside in the state for at least 730 days. If you haven’t lived in one state for two years before filing, you’ll need to apply the exemptions from the state where you lived the longest during the 180 days prior to your filing.
Sources:
[1] The American Bankruptcy Institute. (2024). Bankruptcy Filing Trends in Ohio. https://abi-org.s3.amazonaws.com/Newsroom/State_Filing_Trends/2024/Filing_Trends_Ohio.pdf
[2] Office, U. E. (n.d.-b). U.S. Trustee Program/Dept. of Justice. https://www.justice.gov/ust/eo/bapcpa/20240401/bci_data/median_income_table.htm