New Ohio Bankruptcy Laws & Changes in 2025–2026
Ohio bankruptcy laws changed a little bit in 2025. These changes mainly impacted the exemption factors in bankruptcy filings, which focused on personal residence, exempted property, etc. Why should this matter to you?
In 2025, over 211,000 individuals filed for Bankruptcy in the Ohio’s Southern District, and more than 234,000 filings occurred Ohio’s Northern District. [1]
The Ohio laws that have changed impact both current and future filers of bankruptcy. Let us look at the bankruptcy law changes that occurred in 2025.
1. Ohio Exemption increases took effect on 1st of April
2. Federal Rules for Bankruptcy Procedure amendments began on the 1st of December
Changes in Exemption
The law changes focused primarily on Ohio bankruptcy exemptions, as they took effect on April 1, 2025, until 31st March, 2028. ORC Section 2329.66.
These changes are made in the light of inflation, and focus on Chapter 7 and 13 filers. This includes protection for personal property and assets like homes and vehicles. [2]
The exemption amount changes are as follows:
Legal Exemptions Amended | Changes Made (New exemption amounts from April 1st, 2025, until March 31st, 2028) |
(A)(1)(a) Exempt property | $182,625 |
(A)(1)(b) Personal residence | $182,625 |
(A)(2) One motor vehicle | $5,025 |
(A)(3) Cash exemption | $625 |
(A)(4)(a) Household items – individual item | $800 |
(A)(4)(a) Household items – aggregate value | $16,850 |
(A)(4)(b) Jewelry | $2,125 |
(A)(5) Professional books or trade tools | $3,200 |
(A)(12)(c) Award for bodily injury | $31,650 |
(A)(18) Aggregate property | $1,675 |
These changes do not only apply to those who filed for Chapter 7 or Chapter 13 after 1st of April. A consultation with a bankruptcy attorney can clear your position.
Federal Procedural Updates
Two main federal laws were also amended in 2025, which directly impacted Ohio’s bankruptcy filers. These laws improved clarity and efficiency for bankruptcy cases. They expanded notice requirements and simplified the appellate process.
The two main changes are as follows:
Rule 3002.1
The changes in this law cover more home loans now and provide reverse mortgages. Under this law, lenders will be required to send Payment Change Notices (PCNs) if payments are not made as contracted. Rule 3002.1
Lenders must also file yearly payment updates with proof of over/underpayments. Under this law, trustees can send an “End-of-Case Notice” on cure payments. Lenders are required to respond and confirm that defaults are fixed.
Rule 8006
This law change clarifies timelines for bankruptcy appeals. The focused changes include when to file notices and records, and to avoid delays. The new changes also mandate alignment with civil and appellate rules. Rule 8006
Under these new changes, courts can also shorten the expense dispute times if deemed necessary. This will allow a smoother filing process.
Court Rules and Forms Updates
This law change took place in the Northern District of Ohio. The change does not directly impact the bankruptcy filing process or exemptions.
Instead, it focuses on ensuring the security and safety of filers by ensuring Multifactor Authentication (MFA). [3]
The following are the key changes and things to know:
First Round of Changes: In August of 2025, non-enrollees faced a random mandatory change in login security in the eighth month.
Full CM/ECF Requirement: By the end of 2025, Google Authenticator or backup codes will be necessary to use as authenticators.
Why Are Ohio Exemptions Important?
Exemptions are important, as they allow you to protect important assets. If you are a liquidation filer (Chapter 7) or a repayment plan filer (Chapter 13), then you can protect your assets under ORC Section 2329.66.
Ohio bankruptcy exemptions include the following:
- Homestead exemption
- Household goods
- Insurance benefits
- Jewelry
- Motor vehicle
- Pensions
- Public benefits
- Tools of the trade exemption
- Wages
- Wildcard exemption
The law entitles you to protect these assets under exemption laws when filing for bankruptcy, with exceptions in specific cases.
Whether you file for liquidation or repayment bankruptcy, you can benefit from exemptions.
Are You Looking To File For Bankruptcy in Ohio?
If you are looking to file for bankruptcy, then the new laws apply to you as well. Richard West Law Offices can help you with the filing process. Call 937-748-1749 and get a free bankruptcy consultation.
FAQs
Exemptions allow you to retain necessities in bankruptcy filings. This includes important assets, such as homes, vehicles, tools of the trade, and household goods. These exemptions only apply to Chapter 7 or Chapter 13 bankruptcy filings.
The homestead exemption saw the largest increase in 2025. The rise of the homestead exemption was around 13.2%, as it went from $161,375 to $182,625 on 1st April, 2025. Award for bodily injury also increased by around 13%, as it went from $27,950 to $31,650.
In Chapter 7, the higher exemptions protect more property for sale by the trustee. If exceptions are made, then you may be allowed to keep the property altogether. In Chapter 13, the exemptions reduce the required payments by lowering the nonexempt equity.
Yes, Ohio exemption laws can prevent wage garnishments. The exemption law in the state mandates wage garnishment to a portion of disposable earnings only. This means the income is protected alongside assets from creditors.
Sources:
[1] Bankruptcy cases in Ohio Northern District. (n.d.). https://bkdata.com/research/ohn
[2] April 1, 2025, Ohio Exemption Increases | Southern District of Ohio | United States Bankruptcy Court. (n.d.). https://www.ohsb.uscourts.gov/news/april-1-2025-ohio-exemption-increases
[3] Multifactor authentication for CM/ECF and PACER users starting May 11, 2025 | Northern District of Ohio | United States District Court. (n.d.). https://www.ohnd.uscourts.gov/news/multifactor-authentication-cmecf-and-pacer-users-starting-may-11-2025
