When filing for Chapter 7 bankruptcy in Ohio, exemptions will allow you to protect some of your property from creditors. When filing for Chapter 13 bankruptcy in Ohio, exemptions will affect how much you are required to pay your creditors under your Chapter 13 plan. Exemptions are valuable and important to take advantage of if you ever find yourself in the position of needing to file bankruptcy.
What Property Can You Protect from Creditors When Filing Bankruptcy in Ohio?
There are several important things to note about property exemptions under state and federal bankruptcy laws. For instance, when you file bankruptcy in Ohio, you may make full use of federal exemptions as well as the Ohio exemptions. Other states would make you choose between using the state or federal exemptions, but Ohio does not. The federal exemptions are particularly important in protecting any federal or military benefits you may be receiving.
If you are looking to exempt property that is currently secured by a loan, such as your home or maybe your car, only the equity you have in the property will be protected by the exemption. Equity will be the difference between the property value and what is still owed on the property. If the amount of equity you have in the property is not fully covered by the exemption, the trustee may liquidate the asset and would likely distribute the proceeds from the sale in the form of a cash payment to you. If you wish to try and keep property that is non-exempt, you will generally be required to pay the trustee the full value of the non-exempt property.
Some of the most commonly utilized bankruptcy exemptions for Ohio include:
- $475 of cash on hand or deposit
- $3,775 of value in a car or other motor vehicle
- $12,625 of value in household goods
- $1,250 of value in any property
- 75% of wages
- Private pensions, 401(k)s, IRAs
- 529 savings plans
- Disability assistance payments
- Unemployment compensation benefits
- Workers compensation benefits
- Reasonably necessary spousal support or child support
Additionally, you may exempt up to $136,925 of value in property you use as a residence. This is referred to as the homestead exemption.
Under bankruptcy law, married couples who file jointly may each claim a full set of exemptions unless it is noted otherwise.
Protecting Your Best Interests in the Most Difficult of Times
Bankruptcy is often a scary, albeit it necessary, prospect to consider. Our firm is committed to providing you dedicated and dependable legal counsel to help you through every step of the bankruptcy process. Our knowledgeable attorneys will protect you and your best interests during what may be one of the most stressful times of your life. Know that you do not have to and should not have to go through this alone. Contact Miami Valley Bankruptcy today. We proudly serve Beavercreek, Jamestown, and Xenia, Ohio.