Will I Lose Anything if I File Bankruptcy?
If you’re like most people under financial duress, you are wondering, “Will I lose anything if I file bankruptcy?” The state of Ohio has very specific rules regarding “protected exemptions.” Protected exemptions are those assets which you will not lose when you file bankruptcy. 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 assets below:
Your home
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.
Your home
Your homestead has a $20,200 exemption. This means that if your equity is less than or equal to $20,200 and you can make the mortgage payments, you can keep your home. This exemption is doubled for married couples, filing bankruptcy jointly ($40,400.)
Your car
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.
Your tools
Each person can protect up to $2,025 worth of tools of the trade. This is $4,050 for a married couple.
Your jewelry
Each person can protect up to $1,350 in jewelry. This is $2,702 of jewelry for a married couple.
Your personal items
Each person can keep up to $10,725 of personal items (with no item being worth more than $525) and a married couple can keep up to $22,450 of personal items. Examples of personal items would be clothing, furniture, books, computers and the like.
Wild card
In addition, there is a wild card of $1,075 per person ($2,350 per married couple) that could be used to help you to keep your car, home, or cash.
Where do I get help?
Consult with a qualified attorney when considering bankruptcy or if you have any questions about protecting your assets. Bankruptcy is a very specialized area of law; be sure your attorney focuses his or her practice on bankruptcy and protecting your exemptions. We focus our practice on bankruptcy law and you can reach us at 513-793-6555 or by email at Thomasjr@geygan.com. We will gently walk you through the process and aggressively fight for your legal rights.
