Ohio Bankruptcy Exemptions: Keep Your Property

Bankruptcy exemptions let you keep important possessions when filing bankruptcy. You don’t have to sell everything to repay debts. Ohio requires residents to use state exemptions. These protect your home, car, personal items, and money benefits.

Understanding these exemptions helps you file bankruptcy confidently. Most Chapter 7 filers keep all their property. You just need to know what qualifies for protection.

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Find out if Chapter 7 bankruptcy can discharge your debts while protecting your home, car, and personal property under Ohio's generous exemptions. Get a free consultation with a bankruptcy attorney today.

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Why Ohio Bankruptcy Exemptions Matter in Chapter 7

Federal bankruptcy law governs all U.S. bankruptcy cases. But Ohio creates its own exemption rules. These bankruptcy exemptions protect you from losing everything you own.

When you file Chapter 7 bankruptcy in Ohio, the court appoints a trustee. The trustee can sell your non-exempt assets to pay creditors. But most of your belongings will likely be exempt. The trustee cannot touch exempt assets.

Most Chapter 7 filers keep all their property. You won’t lose your belongings if they qualify for exemptions.

Who Can Use Ohio Bankruptcy Exemptions

You must use Ohio exemptions if you’ve lived here for two years. Federal bankruptcy exemptions don’t apply to you. Ohio opted out of the federal exemption system.

But you can still use federal non-bankruptcy exemptions. These protect specific benefits like:

Social Security benefits
Veterans’ benefits
Federal and military retirement benefits
Other federally protected benefits

Can You Choose Federal Bankruptcy Exemptions Instead

No. Ohio doesn’t allow you to choose federal exemptions. You must use state exemptions if you’ve lived here two years.

The two-year requirement prevents people from moving to exploit better exemptions. You’re stuck with Ohio’s rules if you qualify as a resident.

Ohio Bankruptcy Exemptions Explained

Your bankruptcy estate includes everything you own. The court takes temporary control when you file. Your belongings split into two categories: exempt and non-exempt property.

Exempt property stays with you. Non-exempt property can be sold to pay creditors. If everything qualifies as exempt, you lose nothing.

Unsecured debts like credit cards and medical bills get discharged. The trustee only sells non-exempt items. Most filers keep everything they own.

If you’re considering bankruptcy, speak with a bankruptcy attorney for free to understand how exemptions apply to your situation.

Ohio Homestead Exemption for Real Property

Ohio’s homestead exemption protects up to $182,625 of home equity. Real property means your house and land. Only your primary residence qualifies, not investment property.

The exemption protects equity, not total value. Calculate equity by subtracting your mortgage from home value. Say your Cleveland home is worth $460,000. You owe $350,000 on the mortgage. Your equity is $110,000.

Since $110,000 falls below $182,625, your home is fully protected. You can keep your house through bankruptcy.

The exemption adjusts annually for inflation.

Personal Property Exemptions in Ohio

Personal property includes movable belongings. Cars, furniture, electronics, and household goods all qualify. Ohio protects specific items up to certain dollar amounts.

Married couples filing jointly can double these exemption amounts. Here are the most common personal property exemptions.

Motor Vehicle Exemption

Ohio protects up to $5,025 of vehicle equity. Equity equals market value minus your car loan balance. Keeping your car in bankruptcy is usually possible.

Say your vehicle is worth $10,000. You owe $6,550 on the loan. Your equity is $3,450. The exemption fully protects your car.

If you owned it outright, you’d have $10,000 equity. Only $5,025 would be exempt. The trustee could sell it and give you $5,025.

Household Goods and Other Personal Property

Ohio protects various personal belongings with specific limits:

Cash on hand or deposit: $550
Household goods, furniture, appliances: $14,875 total (each item capped at $625)
Jewelry: $2,825
Single burial plot: Fully exempt
Personal injury awards (received within 12 months): $2,825
Books and work tools: $2,825

Wildcard Exemption

Ohio’s wildcard exemption protects any property worth up to $1,675. Use it for assets not specifically named in state law. Or add it to existing exemptions to increase protection.

The wildcard gives you flexibility. You choose what to protect with this exemption amount.

Money Benefits Exemptions

Retirement accounts, public benefits, and insurance proceeds get protection too. Ohio exempts various types of money benefits from creditors.

Alimony and Child Support

Ohio fully exempts child support and alimony payments. These must be reasonably necessary for supporting you and your dependents. The court won’t take support payments needed for living expenses.

Retirement and Pension Exemptions

Federal law protects most retirement accounts. Tax-exempt accounts like 401(k)s, 403(b)s, and IRAs are fully exempt. Public employee pensions are also protected.

Ohio law adds additional pension protections. Any federally tax-exempt pension is typically fully protected in bankruptcy. Your retirement savings remain safe.

Public Benefits

Ohio fully exempts many public assistance benefits:

Child tax credits and earned income tax credits
Vocational rehabilitation benefits
Disability assistance
Workers’ compensation benefits
Unemployment compensation
Crime victim’s compensation

Insurance Exemptions

Ohio protects various insurance benefits:

Benevolent society benefits: Up to $5,000
Group life insurance proceeds or policies: Fully protected
Fraternal benefit society benefits: Fully protected
Disability benefits: Protected if necessary for support
Life insurance proceeds for spouse: Protected if necessary for support

Filing Chapter 7 Bankruptcy in Ohio

Ohio’s exemptions protect most of what you own. Most Chapter 7 filers keep all their property. Understanding exemptions removes fear from the bankruptcy process.

You can discharge credit card debt, medical bills, and other unsecured debts. Your home, car, and personal belongings stay protected. Retirement accounts and public benefits remain untouchable.

Chapter 7 gives you a fresh financial start. You eliminate overwhelming debt without losing everything you own.

Frequently Asked Questions

What is the homestead exemption amount in Ohio?

Ohio's homestead exemption protects up to $182,625 of equity in your primary residence. This amount adjusts annually for inflation. Equity is calculated by subtracting your mortgage balance from your home's current market value.

Can I use federal bankruptcy exemptions in Ohio?

No, you cannot use federal bankruptcy exemptions in Ohio. If you've lived in Ohio for at least two years, you must use Ohio state exemptions. However, you can still use federal non-bankruptcy exemptions for benefits like Social Security and veterans' benefits.

How much car equity can I protect in Ohio bankruptcy?

Ohio protects up to $5,025 of equity in your motor vehicle. Equity is your car's market value minus what you owe on any car loan. If you're married and filing jointly, you can double this amount to protect up to $10,050 in vehicle equity.

What is Ohio's wildcard exemption?

Ohio's wildcard exemption allows you to protect any property of your choosing worth up to $1,675. You can use it to protect assets not specifically named in state law, or add it to existing exemptions to increase the protected amount.

Will I lose my retirement account if I file Chapter 7 in Ohio?

No, retirement accounts are protected in Ohio bankruptcy. Federal law exempts tax-qualified accounts like 401(k)s, 403(b)s, and IRAs. Public employee pensions and other federally tax-exempt retirement plans are fully protected from creditors.

Ohio Bankruptcy Exemptions: What You Can Keep in Chapter 7