Like all states, Ohio has a set of exemptions you can use to protect some property when filing for bankruptcy, such as a home, car, and retirement account. In this article, you'll learn:
If you have more questions, read Filing for Bankruptcy in Ohio. Not only will you find answers, but it includes helpful checklists and a link to an interactive bankruptcy quiz. Or, try the start-to-finish bankruptcy guide, What You Need to Know to File for Bankruptcy.
You can protect property covered by an exemption regardless of whether you file for Chapter 7 or 13. But each chapter treats nonexempt property—things not covered by an exemption—differently.
Use the list below to determine whether you can protect property important to you. Although the federal bankruptcy exemptions aren't available in Ohio, keep in mind that spouses who share an ownership interest in property can double the corresponding exemption. Also, all filers are entitled to:
Here's a sampling of Ohio's exemptions.
You can protect up to $19,300 of equity in real estate or tangible personal property. In Ohio, the homestead exemption applies to real and personal property that you or your dependents use as a residence, including your home, condominium, or mobile home. Ohio debtors or their dependents must reside in the property in which they claim the homestead exemption when bankruptcy is filed.
Learn more about the Ohio homestead exemption in bankruptcy.
You'll be able to exempt up to $4,000 of equity in one vehicle. (Ohio Rev. Code Ann. 2329.66(A)(2).) But if your car is financed, you'll have to meet other requirements. Learn more about the motor vehicle exemption and protecting cars in bankruptcy.
A wildcard exemption allows you to exempt any property of your choosing. Ohio's wildcard exemption will cover up to $1,325. (Ohio Rev. Code Ann. 2329.66(A)(18).) Learn how to add a wildcard to another exemption and protect even more.
You can exempt the following personal property:
Pension and Retirement Benefits
The following pensions and retirement benefits are exempt:
Miscellaneous Ohio Exemptions
Exemptions change periodically. You can verify exemption statutes on the Ohio Legislature's website or by consulting with a local bankruptcy lawyer. If you need more help, you can learn about finding state statutes in Laws and Legal Research.
You can file for bankruptcy in Ohio after living there for more than 180 days. However, you must live in Ohio much longer before using Ohio exemptions—at least 730 days before filing, to be exact. Otherwise, you'd use the previous state's exemptions.
But suppose you weren't living in any particular state during the two years before filing for bankruptcy. In that case, you'd use the exemptions of the state you lived in for most of the 180 days before the two-year period that immediately preceded your filing. (11 U.S.C. § 522(b)(3)(A).) Learn more about filing for bankruptcy after moving to a new state.
Also, to claim the total value of the Ohio homestead exemption, you must have purchased and owned the property for at least 1,215 days before the bankruptcy filing. If you can't meet this requirement, your homestead exemption is limited by federal law to $170,350 (this figure will adjust on April 1, 2022).
If you don't exempt your property carefully, you could lose it. Answers to these questions might help you steer clear of common issues.
Do I automatically get to keep my exempt property? Generally, no. Here's the procedure you'll need to follow: You'll select the exemption set that best protects your property, list the exempt assets and applicable exemption laws on Schedule C: The Property You Claim as Exempt, and file it with your other required paperwork.
Will someone check my exemptions? The bankruptcy trustee—the court-appointed official tasked with managing your case—will review Schedule C to ensure that you have the right to protect the claimed property. A trustee who disagrees with your exemptions will file an objection with the court. The judge will decide whether you can keep the property.
Example. Jeff owns a rare, classic car worth $15,000, but the state vehicle exemption won't adequately protect it. Believing that the car qualifies as art—at least in his mind—Jeff exempts it using his state's unlimited artwork exemption. The trustee reviews Schedule C, disagrees with Jeff's characterization and files an objection with the court. After consideration, the judge will likely side with the trustee, determining that the vehicle doesn't qualify as a piece of art.
What if I make a mistake? Most trustees won't file an objection unless it's clear that the debtor is trying to pull something over on the court. At least not without trying to resolve the issue first. If there's a minor exemption problem, the trustee will likely call you to work out the matter informally.
It's worth noting that it's not a good idea to finesse exemptions. Not only do you have an obligation to supply correct information on your bankruptcy forms, purposefully making inaccurate statements could be considered fraudulent. Bankruptcy fraud is punishable by up to $250,000, 20 years in prison, or both.
You might not know this, but Nolo has been making the law easy for DIYers for over fifty years. If you have questions, use the links we've included throughout for more details. Otherwise, you'll find the answers to almost all of your bankruptcy questions at nolo.com/legal-encyclopedia/bankruptcy or by consulting with a local bankruptcy lawyer.
This overview cannot provide all of the information you'll need to file a bankruptcy case. Consider buying a self-help book such as How to File Chapter 7 Bankruptcy by Attorney Cara O'Neill and Albin Renauer J.D for more detailed information.
Updated August 11, 2021