Ohio Bankruptcy Exemptions


(Portions reprinted by permission from How to File for Chapter 7 Bankruptcy, Nolo © 1989-2019 )

Ohio Bankrupcty Exemptions Summary

(details below...)

Federal Bankruptcy Exemptions NOT Available in Ohio

Ohio has opted out of the Federal Exemptions (see below)

Homestead

Real or personal property used as residence to $132,900 (as of April 1, 2013)

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Auto/Truck (aka Motor Vehicle)

Real or personal property used as residence to $132,900 (as of April 1, 2013)

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Personal Property

Real or personal property used as residence to $132,900 (as of April 1, 2013)

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Wild Card

Real or personal property used as residence to $132,900 (as of April 1, 2013)

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Wage Garnishment Law

Real or personal property used as residence to $132,900 (as of April 1, 2013)

  (more...)

More Ohio Exemptions...

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Ohio Bankruptcy Exemptions

Federal Bankruptcy Code Exemptions Not Available in Ohio

Although the federal bankruptcy code provides a list of exemptions, these exemptions are not available in Ohio. Ohio law requires you to use the exemptions found in state law -- not the U.S. bankruptcy code.

Federal "non-bankruptcy" exemptions are available

However you are entitled to use so-called federal "non-bankruptcy" exemptions in addition to your state law exemptions. Non-bankruptcy exemptions are those found provisions of U.S. law that are not part of the bankruptcy code.

The four most significant non-bankruptcy exemptions are for

  • Wages (a general cap on what percentage of your wages can be garnished),
  • Social Security benefits,
  • Civil Service benefits,
  • Veterans Benefits

Other so called "non-bankruptcy" exemptions mostly deal with various benefits to government and military personnel, with a few odd laws regarding specially-regulated labor markets such as railroad workers, seamen, and longshoremen.

Special Notes regarding Ohio exemptions:

2329.66(A) exemption amounts were adjusted for inflation, effective April 1, 2019. See 2329.66(B). Amounts match the inflation adjustments for the federal bankruptcy exemptions.

Can you double exemptions for joint filers? (General principles)

If you are married and filing together, you and your spouse must use the same law; one cannot use federal law while the other uses state law. However, the exemption law chosen applies separately to each spouse. Thus, it is generally possible to double the amount of state law exemptions, Cheeseman v. Nachman, 656 F.2d 60 (4th Cir. 1981) (married couple filing a joint petition was entitled to double the Virginia homestead exemption), unless state law (e.g. California) specifically prohibits a couple from doubling certain exemptions. See First National Bank v. Norris, 701 F.2d 902 (11th Cir. 1984)(Alabama); Granger v. Watson, 754 F.2d 1490 (9th Cir. 1985)(California).

Disclaimer

Disclaimer

Citations and links to primary law and secondary sources are provided for those who wish to do further research. Every effort has been made to make this information up to date and accurate, but laws can and do change without notice. Persons relying on this information are responsible for confirming its timeliness and accuracy before relying on it. (This information was updated for April 2019.)

Also bear in mind that these brief summaries do not list every detail or exception to these exemptions. For example, there are often exceptions for collection of child support debt and/or taxes. These listings are designed to inform you of laws that exist for your benefit, so that you may exercise what rights you may have.

Finally, this website is intended to provide information only. It cannot answer whether your property does or does not qualify for a specific exemption.

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Ohio Homestead Exemption

Almost every state provides protection for equity in the family home, and many states have increased the amount of protection in recent years. Seven states offer unlimited protection. Most states are not as generous.

New Federal Residency Requirement

Under the new bankruptcy law, you must be have lived in the state for at least 40 months (three years and four months) before you can claim any homestead protection greater than $160,375. (If your state's exemption offers less than this amount, the law is irrelevant to you.) The law is poorly worded but seems to say that if you move from one home to another in the same state, you can claim that state's homestead protection.

IF you are moving to another state, OR you moved to Ohio within in the last two years, click here.


Home Valuation tool

Just add your street address to get an estimate of the value of your house, and all others in your neighborhood. (Note: Does not serve all areas, and valuations are imperfect estimates only.)

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Tenancy by Entirety Exemption

Tenancy by the Entirety (TBE) is a form of property ownership, based on traditional English common law, that is still recognized in about 1/2 of states and the most common form of martial property ownership in many of them.

It protects property that is jointly owned by a married couple as an "entirety" -- which is to say, as a single marital entity, not as individuals.

Tenancy by the Entirety (TBE) was originally conceived as a debt shield -- a way of protecting wives and children from being left homeless and penniless as a result of the debts of a husband. Under the English common law TBE doctrine, a husband could not sell property owned by "the entirety", or give it away, or pledge it as security for a loan without the consent of his wife.

Today, 25 states still recognize some form of tenancy by the entirety, but they differ on the extent to which the property is exempt.

Special notes about Ohio Tenancy by the Entirety Exemptions: Ohio recognizes TBE but only those created before April 4, 1985 are exempt.

  • Property held as tenancy by the entirety created prior to April 4th 1985 may be exempt against debts owed by only one spouse
    In re Pernus, 143 B.R. 856 (N.D. Ohio 1992)(entireties property purchased 2 days before April 4th 1985 cutoff date held to be exempt)
    In re Cline, 164 B.R. 592 (Bankr.S.D. Ohio 1994)(1985 law allowing creditor of a survivorship tenant to reach that tenant's interest in real estate does not apply to TBE ownership that arose prior the law)

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Ohio Insurance exemptions

Virtually all states protect life insurance proceeds in some manner or another. Some restrict it to proceeds paid to a dependent. Many states also protect the cash-value or loan-value of insurance policies.

If a substantial amount of your assets are in life insurance, you may want to consult a professional to determine the extent to which those policies are exempt.

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Homestead | Insurance | Misc | Pensions | Personal Property | Public Benefits | Tools of Trade | Wages | Wild Card |


Miscellaneous other exemptions for Ohio

This category covers items like partnership property, alimony & support payments.

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Ohio Pensions & Retirement Savings Exemptions

The new federal bankruptcy law now automatically exempts a virtually all tax-exempt pensions and retirement savings accounts from bankruptcy, even if you are using state law exemptions. 11 U.S.C. § 522(b)(3)(C). (See Help Topic: Special Rules For Retirement Accounts.)

The law protects up to $1,283,025 of any pension or retirement fund that qualifies forspecial tax treatment under Internal Revenue Code sections 401,402, 403, 408, 408A, 414, 457, or 501(a).

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Homestead | Insurance | Misc | Pensions | Personal Property | Public Benefits | Tools of Trade | Wages | Wild Card |


Ohio Personal Property Exemptions

This category covers your car, your non-retirement bank accounts, and most of your other personal possessions, other than your house.

States vary widely on how generous they are in this area. Some exemptions may be for any combination of property up to an aggregate amount. Other exemptions apply only to specific items, such as jewelry.

Remember that an exemption will not protect your car from being repossessed by the holder of the car loan you used to purchase the vehicle if you pledged the vehicle as security for the loan. To keep the car, you will have to pursue other options such as 'redemption' or 'reaffirmation.' See the help topics and How to File for Chapter 7 Bankruptcy for more on this.

Auto Valuation Tools:

Both of these websites offer interactive tools to determine the current value of your used car.

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Ohio Public Benefits Exemptions

Most states exempt public benefits, consistent with the notion that such benefits are intended as a safety net for the recipient.

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Ohio Tools of Trade Exemptions

These are the things you use to make a living. An automobile or truck can be a tool of trade if you use it as such. Commuting to work doesn't count, but if driving is a necessary component of transacting your business, you can claim your vehicle is a tool of trade.

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Ohio Wage Garnishment Laws

Most states have a wage garnishment law. In some states, wage garnishment laws can be used in bankruptcy as an exemption to protect income that you had coming due, but not yet received, as of the day you filed, for work you had already done -- so called "earned but unpaid wages".

In some states, the wage garnishment law protects not only wages owed to you, but also wages already in your possession and saved over time preferably holding it in a separate bank account. In other states wage garnishment laws do not protect wages once they are they are in your possession.

Special notes about Ohio Wage Garnishment Exemptions: While Ohio's wage garnishment exemption Ohio Rev.Code 2329.66(A)(13) protects wages, one court found that compensation for independent contractors could be exempted via Ohio Rev.Code 2329.66(A)(17), which incorporates federal non-bankruptcy exemptions and garnishment laws into the Ohio bankruptcy exemptions. In re Jones, 318 BR 841 (Bankr. SD Ohio 2005)

  • Minimum 75% of disposable weekly earnings or 40 times the federal hourly minimum wage, whichever is higher; bankruptcy judge may authorize more for low-income debtors
    Ohio Rev. Code Ann. 2329.66 (A)(13)

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Ohio Wild Card Exemption

Most, but not all, states allow a so-called "wild-card" exemption that can apply to any property. The wild card exemption can be of particular help if one or more of your other exemptions falls short of protecting your equity. You may split your wild card exemption amount over multiple items and stack it atop other exemptions as needed to protect exposed equity.

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