Bankruptcy: Some Assets Are Protected By Law
When a person files either a Chapter 7 straight bankruptcy or a Chapter 13 payment plan, certain property is protected from creditors. Ohio law allows you to exempt (protect) any property that falls into one of the categories listed below up to the dollar amounts listed. The exemption limits apply to the equity in the property, which is the difference between the property value and any debt owed against the property. For example, if you own a car worth $10,000 and you owe $7000 on the car loan, the portion that is paid off is your equity in the car. Since the exemption for a car in Ohio is $3450, the equity would be totally protected. Here is a partial list of exemptions in Ohio:
| Asset | Amount Protected |
| Your home you live in | $21,625 per person |
| Your car titled in your name | $3,450 |
| Household Goods | $11,525 |
| Jewelry | $400 per item $1,450 total |
| Tools of the trade | $2,175 |
| Child tax credit/Earned income credit | 100% protected |
| Wild Card (applies to anything you want) | $1,150 |
If you have equity in an asset that exceeds the amount of the exemption to which you are entitled under Ohio law it may affect whether you file a Chapter 7 or a Chapter 13 payment plan. This requires analysis by an attorney who can give you the best legal bankruptcy advice. If you would like an appointment for a free consultation to learn your rights feel free to call us. We will do everything we can to be of service to you and to protect your best interests.
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