While you know that filing for bankruptcy could be a great move for your future, you’re concerned about all of your assets being taken away. Thankfully, like every other state, Ohio has a list of assets that are exempt from bankruptcy. That way, you can do what you need to for your financial future and not face serious disruptions in your life.
Learn more about the exempt assets, and then call a bankruptcy attorney to figure out how to proceed.
Your Primary Residence
You can exempt your homestead, or your primary residence, from bankruptcy. However, there is a limit – you can only exempt up to $145,425 of your equity in one property that you live in. If you file for bankruptcy jointly with your spouse, you can exempt up to $290,850. Condos, houses, mobile homes, and manufactured homes are all eligible for an exemption.
Your Automobile
There is a $4,000 exemption for your personal automobile. If you are filing jointly with your spouse, you can take $4,000 from each of your personal automobiles only.
Personal Property
If you have personal property you want to protect, then use this exemption. Some things you can exempt include:
- Up to $1,700 worth of jewelry
- $13,400 in household goods, including furniture and appliances, and up to a maximum of $625 for each good
- Your interest in a burial plot
- $500 in cash
- $25,175 of a personal injury award that you won in the past 12 months before you filed for bankruptcy
Tools of the Trade
If you own a business and you need to use tools in order to operate, then you are allowed to exempt a maximum of $2,550 of the value of the tools of your trade, occupation, or business.
Wildcard Exemption
You can protect up to $1,250 worth of any property of your choice as part of the wildcard exemption. The only catch is that you can’t apply it to real estate.
Public Benefits
If you file for bankruptcy in Ohio, then you can still retain your public benefits such as disability benefits, unemployment, workers’ comp, and earned income as well as child tax credits.
Your Pension
Do you have a pension or retirement account? Thankfully, most retirement accounts are exempt from bankruptcy. They include private pensions, Roth IRAs, regular IRAs, and private pensions.
Alimony and Child Support
If you receive alimony and/or child support as part of a divorce agreement, then you can keep receiving them since they are exempt.
Filing for Your Exemptions
Note that you need to live in Ohio at least 180 days prior to filing for bankruptcy, but to take advantage of the exemptions rules, you need to live there a minimum of 730 days before you file. If you haven’t been here that long, then you would need to go by your previous state’s exemption laws. In addition, if you want to claim the homestead exemption, you need to have purchased and owned your property at least 1,215 days before you end up filing for bankruptcy.
Get in Touch With Richard P. Arthur
Richard P. Arthur, Attorney at Law, can help you file for bankruptcy and take out the valid exemptions that apply to your situation. You can call 937-254-3738 for a consultation. He has more than three decades of experience helping clients in Dayton and Trotwood, as well as Montgomery, Greene, Miami, Clark, and Warren counties.