When a person files for chapter 7 bankruptcy, certain property can be exempted or protected from creditors. Ohio allows you to exempt any property that falls into one of the exemption categories below, up to the dollar amount listed.
Exemption limits apply to any equity a person has in the property. Equity is the difference between the value of the property and what is owed on the property. For example, a care valued at $5,000 with a loan of $4,500 has an equity value of only $500.
If the property is secured by a loan, such as a car or a home, and you are current on the payments, the equity is covered by your exemptions, and you elect to keep making payments on the loan you generally can keep this property through the bankruptcy. If all the equity is not covered by your exemptions the trustee may elect to liquidate this asset and distribute the assets. Generally, in this case, you would be entitled to the value of your exemption in the asset as a cash payment.
Unless otherwise noted, bankruptcy law allows married couples filing jointly to each claim a full set of exemptions.
To keep non-exempt property, a debtor must generally pay the trustee the value of the non-exempt property.
When you file bankruptcy in Ohio you may elect to use certain federal exemptions instead of the Ohio exemptions.
ASSET |
EXEMPTION DESCRIPTION |
LAW SECTION |
Homestead |
Real or personal property used as residence to $5000
Property held as tenancy by the entirety may be exempt against debts owed by only one spouse |
2329.66(A) (1) (b)
In re Thomas, 14 B.R. 423
(N.D. Ohio 1981) |
Insurance |
Benevolent society benefits to $5000
Disability benefits to $600 per month
Fraternal benefit society benefits
Group life insurance policy or proceeds
Life, endowment or annuity contract avails for your spouse, child or dependent
Life insurance proceeds for a spouse
Life insurance proceeds if clause prohibits proceeds from being used to pay beneficiary’s creditors |
2329.63, 2329.66(A) (6) (a)
2329.66(A) (6) (e), 3923.19
2329.66(A) (6) (d), 3921.18
2329.66(A) (6) ( c), 3917.05
2329.66(A) (6) (b), 3911.10
3911.12
3911.14 |
Miscellaneous |
Alimony, child support needed for support
Property of business partnership |
2329.66(A) (11)
1775.24, 2329.66(A) (14) |
Pensions |
ERISA-qualified benefits needed for support
Firefighters, police officers
Firefighters’ police officers’ death benefits
IRAs needed for support
Keoghs needed for support
Public employees
Public school employees
State highway patrol employees
Volunteer firefighters’ dependents |
2329.66(A) (10) (b)
742.47
2329.66(A) (10) (a)
2329.66(A) (10) ( c)
2329.66(A) (10) ( c)
145.56
3307.71, 3309.66
5505.22
146.13 |
Personal Property
Note: Jewelry must be counted toward the $1500/$2000 totals |
Animals, crops, books, musical instruments, appliances, household goods, furnishings, hunting & fishing equipment & firearms to $200 per item, $1500 total ($2000 if no homestead claimed)
Beds, bedding & clothing to $200 per item
Burial plot
Cash, money due within 90 days, bank & security deposits & tax refund to $400 total (spouse without income can’t exempt tax refund, In re Smith, 77 B.R. (N.D. Ohio 1987)
Cooking unit & refrigerator to $300 each
Health aids
Jewelry to $200 per item (1 item may be to $400)
Lost future earnings needed for support, received during 12 months before filing
Motor vehicle to $1000
Personal injury recoveries to $5000 (not to include pain & suffering), received during 12 months before filing
Wrongful death recoveries for person debtor depended on, needed for support, received during 12 months before filing |
2329.66(A) (4) (b), (d)
2329.66(A) (3)
517.09, 2329.66(A) (3)
517.09, 2329.66(A) (8)
2329.66(A) (3)
2329.66(A) (7)
239.66(A) ( c), (d)
2329.66(A) (12) (d)
2329.66(A) (2) (b)
2329.66(A) (12) ( c)
2329.66(A) (12) (b) |
Public Benefits |
Crime victim’s compensation, received during 12 months before filing
General assistance payments
Tuition credit
Unemployment compensation
Vocational rehabilitation benefits
Workers’ compensation |
2329.66(A) (12) (a), 2743.66
2329.66(A) (9) (e), 5113.03
2329.66(A) (16)
2329.66(A) (9) ( c), 4141.32
2329.66(A) (9) (a), 3304.19
2329.66(A) (9) (b), 4123.67 |
Tools of Trade |
Implements, books & tools of trade to $750
Seal, official register of notary public |
2329.66(A) (5)
2329.66(A) (15), 147.04 |
Wages |
Minimum 75% of earned but unpaid wages due for 30 days; bankruptcy judge may authorize more for low-income debtors |
2329.66(A) (13) |
Wild Card |
$400 of any property |
2329.66(A) (17) |
