Many people believe that filing for bankruptcy means that you have to give up your most prized possessions. This is, however, not the case. Bankruptcy law allows debtors to take exemptions, which offer certain property some protections from the bankruptcy process. Many of those filing for bankruptcy in Ohio are especially concerned with the homestead and personal property exemptions available to them.
The homestead exemption protects the real property that a debtor uses as his primary residence. The Ohio homestead exemption for bankruptcy is $21,625. If a debtor has more equity than that in his home, it is possible for the trustee to sell the house in a Chapter 7 liquidation in order to help pay off the debtor's creditors. If a person filing bankruptcy has more equity in his home than the homestead exemption covers, he may want to consider Chapter 13 bankruptcy, where a debtor pays back some of his debts, including mortgages, over long periods of time with a structured repayment plan.
Personal Property Exemption
The Ohio personal property exemption covers a variety of things, including:
- Animals, crops, books, musical instruments, hunting and fishing equipment, furniture and firearms up to $200 each for a total of $11,525
- Beds, bedding and clothing up to $200 per item
- Burial plots
- Jewelry up to $1,450
- Cooking units and refrigerators
- Automobiles up to $ 3,450
- Lost future earnings
- Health aids
- Personal injury recoveries up to $ 21,625
- Wrongful death recoveries
Contact an Experienced Bankruptcy Attorney
We hope you find the foregoing useful and that you choose to schedule a consultation today. Contact Info We have four offices: DAYTON (at the 75 South / 725 Interchange);WEST CHESTER (on Route 747 near the Union Center exit on Route 75); and Cincinnati (HYDE PARK and EASTGATE). We would be glad to meet with you at a convenient time, including evenings and weekends.