If you live in your car and face bankruptcy, there is a chance that you worry about losing your primary residence. The good news is that Ohio law provides exemptions to protect your vehicle. But how do these exemptions work, and what are their limitations?
Can living in your vehicle protect it from being taken?
Ohio State Law governs the homestead exemption. According to this law, a debtor can exempt up to $3,225 of equity in a vehicle, primarily if it is their primary residence. Here are some key points to keep in mind:
- The exemption amount only applies to vehicles. The law considers primary residences to be on another tier of exemption, and if you have a separate residence, you can consider applying it as an additional exemption.
- The exemption is limited to $3,225 of equity in the vehicle.
- The exemption is per debtor, not per vehicle.
If you live in your car, you can protect it from creditors during bankruptcy proceedings.
How do you claim the homestead exemption for your vehicle?
To claim the homestead exemption for your vehicle, you must file a claim with the bankruptcy court. Being eligible also plays a crucial role in the exemption of homesteads. To be eligible:
- You must be at least 65 years of age upon filing
- You have an income threshold of $38,600, single or combined if married
- You must own and occupy the property as your primary residence
If you are 100% disabled or a veteran, you are also eligible. You must provide proof that you are currently residing in the vehicle. You will also need to provide documentation showing the vehicle’s value and the equity you have in it.
How can you protect your interests even when filing for bankruptcy?
Ohio’s homestead exemption protects debtors living in vehicles. Claiming this exemption can be difficult, especially with requirements set in place. You must understand these exemptions if you face bankruptcy and live in your vehicle. Consult an attorney familiar with bankruptcy law so you can have protection during the bankruptcy process and keep what matters to you.