Filing for bankruptcy can feel overwhelming, especially if you are worried about your assets. Fortunately, there are rules that allow you to keep essential possessions even after filing.
If you’re considering bankruptcy in Ohio, it’s crucial to know about the state-specific exemptions that could help you protect your most important assets. Let’s dive into the details of Ohio’s bankruptcy exemptions and see how they can work in your favor.
What assets can you keep?
If you’ve been living in Ohio for at least two years, you’re required to use the state’s bankruptcy exemption rules, not federal exemptions. The state set the two-year requirement to prevent residents from moving to take advantage of better bankruptcy exemptions.
For many, the biggest concern is whether they can keep their home when filing for bankruptcy. Ohio’s homestead exemption offers significant protection, allowing you to shield roughly up to $161,000 of equity in your primary residence. If you’re married and filing jointly, this protection doubles to approximately $323,000. Remember, the equity is the value of your home minus what you owe on your mortgage.
The state also provides a motor vehicle exemption that lets you protect up to $4,450 of equity in your car. Other exempted assets include personal property, such as jewelry, household appliances and books.
Managing your finances after bankruptcy
Understanding these exemptions is a crucial step in your bankruptcy journey. They’re designed to help you keep your footing while navigating financial recovery.
Consulting with a knowledgeable attorney may be valuable if you want personalized guidance tailored to your situation. They can help you understand how bankruptcy exemptions work and how they can be helpful to you and your family.