If you’re like most people under financial duress, you are wondering, “Can I keep my house and my car if I file bankruptcy?” The state of Ohio has very specific rules regarding protected exemptions. It is always in your best interest to consult with a qualified bankruptcy attorney regarding your specific circumstances. The law firm of Geygan and Geygan, Ltd. outlines the bankruptcy exemptions for your house and care below:
Can I keep my house if I file bankruptcy?
Tenancy by the entireties property
If your home is owned jointly with your spouse (tenancy by the entireties) and only one of you is seeking debt relief through filing bankruptcy, you may be able to protect the full value of your home. You must continue to pay your mortgage.
Tenancy by the entireties would not offer protection if the creditor has a lien on your property because he did work on your home. A roofing contractor or kitchen installer would be an example.
Seeking relief from medical bills
If you are filing bankruptcy, seeking relief from medical bills, your home is a protected exemption and you will NOT lose your house when you file bankruptcy.
All other circumstances
If you don’t qualify for the tenancy by the entireties or the medical bill exemptions, you (and your spouse) can protect up to $20,200. This means that a married couple has an exemption of up to $40,200.
So, if you have less than $40,200 equity in your home and you continue to pay your mortgage, you will NOT lose your house when you file bankruptcy.
Can I keep my car if I file for bankruptcy?
Each person can protect up to $3,225 of equity in a car. This means that a married couple filing bankruptcy jointly can protect up to $6,450 of equity in cars. In addition, there is a wild card of $1075 per person that could be used to help you to keep your car.
Where do I get help?
Consult with a qualified attorney when considering bankruptcy or if you have any questions about whether you can keep your home and car if you file bankruptcy. Bankruptcy is a very specialized area of law; be sure your attorney focuses his or her practice on bankruptcy and attaining discharge of federal income taxes. We focus our practice on bankruptcy law and you can reach us at 513-793-6555 or Thomasjr@geygan.com. We will gently walk you through the process and aggressively fight for your legal rights.
