When you’re working to reduce and eliminate debt, Ohio bankruptcy filers rely on their automobiles to get them to and from work, take the children to school, and complete a myriad of other tasks and errands. An automobile is often a tool used to earn a living in order to pay off debt. When you must file for an Ohio bankruptcy, the US Bankruptcy and Ohio bankruptcy code allow for borrowers to protect a certain amount of value in their automobile so that they can work to pay down debt.
Ohio Motor Vehicle Exemption in Bankruptcy
Exemptions allow debtors to save certain types of property from being sold to pay back debtors. These exemptions cover property such as your home, vehicle, household goods, jewelry, wages, and tools of the trade, among others. Ohio bankruptcy filers can utilize the Ohio bankruptcy exemptions to cover up to $3,775 of value in a single motor vehicle.
Other Ohio Bankruptcy Exemptions
As aforementioned, many Ohio Exemptions can be utilized in Chapter 7 or Chapter 13 bankruptcy that can help you protect property in bankruptcy. Some of the more common exemptions include:
- $475 in cash
- $1,600 in jewelry
- $12,625 in household goods
- $ 136,925 of value in one piece of personal property
- Many other exemptions. Contact an Ohio Bankruptcy attorney for more information.
Keeping your Vehicle in Ohio Bankruptcy
Keeping your vehicle in Ohio Bankruptcy depends mainly on how much you own in terms of your automobile loan. If you own your vehicle free and clear, you will find it easier to keep it during your bankruptcy in Ohio, provided it’s not an ultra-expensive luxury automobile. If you owe more than your car is worth, you may be able to cram down or reduce the overall loan amount using bankruptcy. If you want to keep your vehicle but still owe money on the loan securing it, you can still keep making payments through a reaffirmation.
Contact a bankruptcy attorney in Dayton Ohio or in your town to get specific answers to your questions about keeping your vehicle in an Ohio Bankruptcy. A Dayton Bankruptcy lawyer who specializes in debt relief can help you wipe out your unsecured debt while retaining your vehicle and other personal and real property.