November 19, 2010 (Press-News.org) Many people may be wary of filing for bankruptcy because they have heard that they will lose many of their assets, including their homes and cars. The truth, however, is that many of those filing for Chapter 7 or Chapter 13 bankruptcy will be able to keep most of their personal possessions.
Below you will find information on the available bankruptcy exemptions under Ohio law. For more information on how these exemptions will apply to your specific case, contact an experienced bankruptcy attorney.
Keeping the House, the Car and Your Retirement Accounts
Under Ohio law, certain types of property are considered exempt during bankruptcy. This means that in a Chapter 7 filing, the bankruptcy trustee cannot take certain property, either up to a certain value or at all, and sell it to satisfy some of the filer's debt. However, any property that is above the exemption amount or not covered by an exemption may be subject to a trustee sale.
Three of the most important exemptions under Ohio law are for the house, the car and retirement accounts:
- The homestead exemption: Under Ohio's exemption statute (ORC ?2329.66), individuals filing for bankruptcy are allowed to exempt up to $21,625 in equity in their primary residence. Those filing jointly are allowed to double the amount to $43,250. If there is still a mortgage on the property, the equity is determined by subtracting the amount owed on the mortgage from the value of the property. The value is the current, real market value of the property if you were to sell it today. For example, if your home is worth $200,000 and you owe $180,000 on the mortgage, then the amount of equity you would own in your home is $20,000 -- well within the homestead exemption.
- Household goods exemption: In addition to keeping up to $20,200 in equity in the family home, Ohio law also permits bankruptcy filers to exempt up to $11,525 in household goods, including furniture, clothing, appliances, books, musical instruments, guns and other hunting and fishing equipment. The exemption also applies to crops and animals.
- The auto exemption : State law also allows individual Chapter 7 filers to exempt up to $3,450 in equity for one car. Determining the equity in the automobile is the same as it is for the home: if you are making payments on the car, then you subtract the amount you owe on the loan from the current real market value of the car. If you own the car outright, then you are allowed to exempt up to $3,450 of the car's real market value from bankruptcy. It is important to keep in mind that the real market value is not what you paid for the automobile, even if you just bought it yesterday; it is what the car currently is worth, which may be markedly less than the sticker price.
Retirement account exemptions
In general, all of the money you have in your retirement accounts is exempt from bankruptcy proceedings. This includes 401ks, IRAs, Roth IRAs, pensions, annuities, education individual retirement accounts, Keogh IRAs, H.R. 10 plans, PERS Deferred Compensation and Ohio Public Safety Officers Death Benefit Funds and other tax exempt retirement funds, including direct transfers and rollover distributions.
Your paycheck
The majority of Chapter 7 filers will be able to keep most if not all of their current paychecks. Ohio law provides that a maximum of 2.75% of disposable earnings or 60 times the federal minimum wage (if paid bi-weekly) may be exempted from bankruptcy, whichever amount is greater. (For those paid weekly, it is 30 times the federal minimum wage and those paid monthly is 100 times the federal minimum wage).
Additional Exemptions
Some of the other exemptions that are available under Ohio law include:
- $400 in cash
- $1,450 in jewelry
- $2,175 for tools of your trade, business or profession
- $21,625 from a personal injury award
Bankruptcy filers are allowed to exempt the full value of the following assets:
- Life insurance proceeds
- Health insurance proceeds
- State and federal benefit programs, including workers' compensation, disability and unemployment benefits
- Ohio Works First Cash Assistance
- Benefits-services from prevention, retention and contingency programs
- Child and spousal support
- Federal earned income tax credit and child tax credit
- Tuition payment contracts
- Reparations for crime victims
- Awards in wrongful death actions
- Partnership property
- Seal and register of public notary
- Health aids
- Burial lots
The Wildcard Exemption
Lastly, Ohio law provides a general exemption up to $1,150 that may be used by filers to provide additional equity protection to any of the exemption classes. For example, if you had $4000 in equity in your car, you could use some of the wildcard exemption amount to fully protect your car from the bankruptcy.
Conclusion
Those who have found themselves struggling with debt should not write off bankruptcy as an option before speaking with an attorney. Last year, Ohio expanded the value of its exemptions to make it easier for those filing for bankruptcy to keep more of the property they have worked so hard to acquire.
These exemptions, however, may not protect all of your property from a trustee sale. It is important to approach bankruptcy with an open-mind, just in case you cannot save all of your assets from liquidation.
An attorney experienced in bankruptcy can determine which exemptions apply to your case and help you determine which, if any, property you may have to forfeit. For more information on bankruptcy exemptions, Chapter 7 or Chapter 13, contact a knowledgeable bankruptcy lawyer today.
Article provided by Harold Jarnicki & Associates
Visit us at www.haroldjarnickiandassociates.com/
Bankruptcy Exemption Basics in Ohio
There is a common misunderstanding that those filing for Chapter 7 bankruptcy will lose their possessions, including their family's home and car. The truth, however, is that most filers will be able to keep the majority of their property - including the house and one car - thanks to the exemptions available under Ohio law.
2010-11-19
ELSE PRESS RELEASES FROM THIS DATE:
Downturn in Economy Sees Upswing in Disability Claims
2010-11-19
Social Security Administration data shows that Social Security Disability Insurance (SSDI) applications have more than doubled in the period from 2000 to 2009. There were 2,816,244 applications filed last year. Soaring disability claims in the midst of a plummeting economy has some questioning the legitimacy of claims.
Unemployment and the Disabled Worker
A recent disability advocate's study reflects that the unemployment rates for people with disabilities reached its highest quarterly rate in the third quarter of 2010. The U.S. Bureau of Labor Statistics indicates ...
A Review of Recent Leandra's Law DWI Arrests
2010-11-19
New York's tough new law on drunk driving, Leandra's Law, has largely been in effect since December 2009. Leandra's Law increases penalties for offenders who are convicted of DWI with a child in the vehicle, in addition to heightening the requirements for driving after a DWI conviction.
Since the law was passed, numerous New York drivers have been arrested and charged with felony DWI.
Overview of Leandra's Law
Leandra's Law, formally known as the Child Passenger Protection Act, was signed into law by New York Governor David A. Paterson in November 2009. The law ...
Richland County Coroner Questions South Carolina DNA Evidence Law
2010-11-19
South Carolina passed a DNA preservation law two years ago to reduce the chance that evidence could be prematurely destroyed before a criminal defendant's legal appeals had been exhausted. But the strict wording of the law has caused Richland County's coroner to withhold cremation permits due to uncertainty, and he recently expressed worry that he may need to postpone burials.
The use of DNA in criminal investigations is a popular feature of television crime shows, and it has had a profound effect on criminal investigations involving murder, assault, sex crimes and other ...
Nursing Home Abuse is Widespread and Takes Many Forms
2010-11-19
Elder abuse has become a growing problem nationwide. The government estimates that between one and two million Americans over age 65 have been injured or mistreated by caregivers.
According to the Illinois Department of Aging, it is estimated that more than 76,000 Illinois residents over the age of 60 are elder abuse victims each year. This November the state closed the Orchard Court Nursing Home for failing to comply with safety regulations. The state may potentially revoke the licenses of six other long-term care facilities.
The true scope of nursing home abuse ...
Sidewalk Fall Injuries in New York City
2010-11-19
With more than 12,000 miles of sidewalk, 8.4 million residents and 47 million visitors each year, it should come as no surprise that slip-and-fall accidents are as common as pigeons in New York City.
The extreme heat in the summer and cold in the winter wreak havoc on the city's sidewalks, creating holes, uneven surfaces, cracks and other hazards that can trip up even the most seasoned New York City pedestrians.
In most American cities, the law holds municipalities responsible for maintaining the safety of public sidewalks - and this was the rule for years in New ...
Leading Perimeter Hotel in Atlanta Announces a New Director of Sales
2010-11-19
The Holiday Inn Express & Suites Atlanta Perimeter Hotel North near Dunwoody, GA, which is part of Imperial Investments, LLC, recently named Pamela Haney their new Director of Sales. The premier Atlanta Perimeter hotel is pleased to welcome Ms. Haney to their management team. Haney is an experienced professional who has worked in the hospitality industry for the past 4 years with Hampton Inn and the Doubletree Alpharetta properties. Prior to that, she worked for Trammell Crow, a property management company. Haney has 20 years of experience in sales and customer relations. ...
Thistle Marble Arch Announces its Head of Housekeeping is Housekeeper of the Year
2010-11-19
Thistle Marble Arch's treasured head of housekeeping, Barbara Sheridan, is celebrating her new title of Housekeeper of the Year. Barbara received the honour at the annual industry awards ceremony celebrating operational excellence within hotels; the Hotel Cateys 2010.
Also shortlisted in the competition were housekeepers from London's Athenaeum Hotel, London's Park Plaza Riverbank and Manchester's Radisson Blu Hotel at Manchester Airport. Barbara gladly collected the sought-after award at a glamorous ceremony held in central London.
Fondly regarded by the entire ...
Superbreak Announces New Event Breaks
2010-11-19
Superbreak, the short break specialist, has announced the addition of several headline acts to its concerts and events break programme. The company has secured tickets to some of the most popular pop, rock and comedy acts currently touring including Kings of Leon, Bon Jovi and Peter Kay.
Recently Superbreak has noticed a surge in demand for its event breaks as its hotel and ticket packages for Take That's Progress Tour went on sale and interest into other live events soared. The Yorkshire based tour operator has responded to current customer demands' for big name acts ...
2entertain Announces the Release of Outnumbered Series Three on DVD
2010-11-19
2entertain has announced the release of Outnumbered series three on DVD. Fresh from its success at the 2009 British Comedy Awards, including the top prize of Best Comedy, the semi-improvised family-based sitcom Outnumbered returns for a third series.
Written by Andy Hamilton and Guy Jenkins (creators of 'Drop the Dead Donkey') this critically acclaimed comedy puts three young children at the very centre of the story - and allows them to improvise.
Series 3 introduces conspiracy theories, sex education, psychotherapy, colonoscopies, astrology and kangaroo saliva ...
Oculus Capital Group Acquires University Village at Slippery Rock
2010-11-19
Oculus Capital Group ("OCG"), an emerging multifamily and student housing owner and manager, has announced the acquisition of University Village at Slippery Rock (formerly known as "The Ivy" student apartments).
University Village at Slippery Rock is a 632-bed, 200-unit property located less than a quarter of a mile from Slippery Rock University in Slippery Rock, PA. The property offers two-bedroom, two-bathroom and four-bedroom, four-bathroom units. All units are equipped with stainless steel appliances, leather furniture, full-size washer and dryer, and hardwood cabinetry. ...
LAST 30 PRESS RELEASES:
Insulin resistance is linked to over 30 diseases – and to early death in women, study of people in the UK finds
Innovative semaglutide hydrogel could reduce diabetes shots to once a month
Weight loss could reduce the risk of severe infections in people with diabetes, UK research suggests
Long-term exposure to air pollution and a lack of green space increases the risk of hospitalization for respiratory conditions
Better cardiovascular health in early pregnancy may offset high genetic risk
Artificial intelligence method transforms gene mutation prediction in lung cancer: DeepGEM data releases at IASLC 2024 World Conference on Lung Cancer
Antibody–drug conjugate I-DXd shows clinically meaningful response in patients with extensive-stage small cell lung cancer
IASLC Global Survey on biomarker testing reveals progress and persistent barriers in lung cancer biomarker testing
Research shows pathway to developing predictive biomarkers for immune checkpoint inhibitors
Just how dangerous is Great Salt Lake dust? New research looks for clues
Maroulas appointed Associate Vice Chancellor, Director of AI Tennessee
New chickadee research finds cognitive skills impact lifespan
Cognitive behavioral therapy enhances brain circuits to relieve depression
Terasaki Institute awarded $2.3 Million grant from NIH for organ transplantation research using organs-on-a-chip technology
Atoms on the edge
Postdoc takes multipronged approach to muon detection
Mathematical proof: Five satellites needed for precise navigation
Scalable, multi-functional device lays groundwork for advanced quantum applications
Falling for financial scams? It may signal early Alzheimer’s disease
Integrating MRI and OCT for new insights into brain microstructure
Designing a normative neuroimaging library to support diagnosis of traumatic brain injury
Department of Energy announces $68 million in funding for artificial intelligence for scientific research
DOE, ORNL announce opportunity to define future of high-performance computing
Molecular simulations, supercomputing lead to energy-saving biomaterials breakthrough
Low-impact yoga and exercise found to help older women manage urinary incontinence
Genetic studies reveal new insights into cognitive impairment in schizophrenia
Researcher develops technology to provide cleaner energy and cleaner water
Expect the unexpected: nanoscale silver unveils intrinsic self-healing abilities
nTIDE September 2024 Jobs Report: Gains in employment for people with disabilities appear to level off after reducing gaps with non-disabled workers
Wiley enhances NMR Spectral Library Collection with extensive new databases
[Press-News.org] Bankruptcy Exemption Basics in OhioThere is a common misunderstanding that those filing for Chapter 7 bankruptcy will lose their possessions, including their family's home and car. The truth, however, is that most filers will be able to keep the majority of their property - including the house and one car - thanks to the exemptions available under Ohio law.