Many people across the country are hesitant to file for bankruptcy for fear of losing their home, vehicle, and other assets to creditors. Others often find it difficult to navigate state-specific and federal exemptions, adding to an already stressful situation. Fortunately, Ohio not only protects debtors with a variety of bankruptcy exemptions that enable you to keep certain property but also utilizes only state-specific exemptions that allow for a smooth and painless process.
The following is a list of common bankruptcy exemptions in the state:
Homestead – Homeowners can keep $136,925 of equity in real or personal property, which you and your dependents use as a residence.
Personal Property – $3,775 of value in one personal vehicle;
- $475 of cash on hand or deposit;
- $12,625 of value in household goods, including furnishings and clothing;
- $1,600 of value in jewelry;
- Full value of medically necessary health kits; and
- Full value of a burial plot.
Wages – Ohio bankruptcy laws protect 75% of your disposable earnings, or up to 65 times the current minimum wage if paid twice per month.
Public Benefits – Full value of private pensions;
- Tax-exempt retirement accounts, including IRA’s and 401(k);
- State teacher retirement;
- Disability assistance payments;
- Unemployment compensation benefits;
- Workers’ compensation benefits;
- And more.
Support – Bankruptcy laws protect spousal and child support for a reasonable amount, i.e., what is necessary for support.
Tools of the Trade – $2,400 of value in tools, books, and other aids required for your occupation or business.
Wildcard – $1,250 of value in property of your choice.
The good news for Ohio’s married couples is that they have the opportunity to file for joint bankruptcy, thereby “doubling” the exemption amount. One condition that determines double exemption is that property must legally belong to both spouses. However, it is strongly recommended to speak with a dedicated Ohio bankruptcy attorney regarding qualifying items whether you are married or not.
Contact Sheppard Law Offices Today
Filing for bankruptcy but unsure which Ohio bankruptcy exemptions apply to your individual situation? Please do not hesitate to call bankruptcy attorney Kenneth L. Sheppard, Jr. today. We look forward to helping debtors protect as much of their property as possible!