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Exemptions Available in an Ohio Bankruptcy

Exemptions Available in an Ohio Bankruptcy

Filing for bankruptcy is an opportunity for a person struggling with financial burdens to get a fresh start. One part of the process may involve forfeiting items and property of value to offset debts.

Ohio allows for certain items to be exempt from forfeiture, including certain property that’s protected from your creditors, such as cars, homes and household goods. The theory behind these exemptions is that, while you may be getting a fresh start, you need certain items to rebuild your life and regain financial stability.

Although there are federal exemptions available in many states, Ohio has its own exemptions and does not let you choose between the state and federal options. In other words, you must use Ohio’s following exemptions if you file for bankruptcy in the state:

  • A person who files for bankruptcy is allowed a certain amount of personal property, including $450 cash, $12,250 worth of household goods, including furnishings and appliances (with no one item valued at more than $575) and $1,550 of value in jewelry.
  • Additionally, a filer is entitled to retain the value of a parcel of real or personal property (a home, manufactured or mobile), as long as it does not total more than $132,900 in value. This property must be the home you and/or your spouse live in, and the exemption does not extend to rental properties.
  • Ohio bankruptcy exemptions also allow filers to retain 75 percent of their wages, and generally all of their private pensions and retirement accounts, including up to $1,171,150 in IRAs and Roth IRAs.
  • Any public benefit offered to a bankruptcy filer is exempt, including unemployment compensation benefits and workers’ compensation benefits.
  • Married couples filing for joint bankruptcy may double these exemptions, each claiming the full amount of exemptions as long as the property is in their names. For instance, if the couple owns a house in both of their names, their exemption is $265,800 in value.

In Dayton and throughout Ohio, filing for bankruptcy is a complicated process. It’s important to work with a knowledgeable legal professional who can guide you through the proper steps and provide invaluable emotional support. Consult an attorney today to learn more about your options.

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