Contrary to a commonly held misconception, the bankruptcy does not leave you penniless on the street. In fact, the opposite is true. Filing for bankruptcy is a great tool for resolving your debt burdens and even protecting your assets. How is this possible?
Bankruptcy exemption laws allow for much of your personal property to be protected from liquidation in bankruptcy. After all, how you can be expected to uphold your debt obligations and make a living in the future without a place to live, a car for transportation or the ability to sustain employment? For this reason, the Bankruptcy Code allows for specific property and their values to be exempt from liquidation.
There are two types of bankruptcy exemption laws, federal and state. Ohio bankruptcy exemption laws are not exactly know for being very liberal with their allowances, but big changes have been made in recent weeks that offer a wider range of property protection. Since April 1, 2013 the exemption laws for the state of Ohio have been changed as a result of a 9% statutory cost of living adjustment.
Here is a list of some of the important changes as of April 1, 2013:
Homestead: $132,900; up from $125,000 weeks prior and $20,200 in 2009
Motor vehicles: $3675; up from $3,225
Cash on hand: $450; up from $400
Individual household good items: $575; up from $525
Total allowance of household goods: $12,250; up from $10,775
Jewelry: $1550; up from $1350
Tools of trade: $2325; up from $2025
Personal injury claim funds: $23,000; up from $20,200
Wildcard item: $1225; up from $1075