People sometimes make the mistake of thinking that they are going to lose everything if they file for bankruptcy. They know that they need to liquidate assets in a Chapter 7 bankruptcy filing, for example, and that the money will be used to pay back a portion of the debt that they owe to creditors.
The key is to remember that you only have to liquidate non-exempt assets. Many people have to give up far less than they expect because there are numerous exemptions that apply. The goal of bankruptcy is not to take all of your assets and give them to creditors, but to create a positive financial future while lessening your debt burden. You need to be able to keep many different assets in order for that to work.
Exemptions that may apply
Everyone’s situation is different, but the following are some potential exemptions that may apply in your case. There are exemptions for:
- A personal residence up to $182,625
- One motor vehicle up to $5,025
- Cash up to $625
- Individual household items up to $800
- Aggregate value of household items up to $16,850
- Personal jewelry up to $2,125
- The tools of the trade or professional books and supplies up to $3,200
- An award you received for bodily injury up to $31,650
It is important to know that the dollar amounts listed above apply through March 31 of 2028. However, the Ohio Revised Code does change from time to time. Therefore, it is important to carefully look into the details when you file to see exactly which exemptions you may qualify for and how significant they are.
You will not have to give up all of your assets, even as you seek a successful bankruptcy filing. That is why it is crucial that you understand exactly how bankruptcy law works. Having experienced legal guidance can make a significant difference.