At Debra Booher & Associates Co., LPA, in Ohio, we understand that sometimes people want to file for an Ohio bankruptcy, but they worry that the trustee will use certain sources of income beyond their earnings to pay creditors, leaving them without adequate support. Fortunately, Ohio has set up many exemptions that protect certain benefits you may be receiving.
Money you are receiving through a scholarship or other tuition assistance, or money in your variable college savings program account is exempt from bankruptcy. If you are a member of a fraternal benefit society that is providing you with benefits, that money cannot be seized to pay back your creditors. Your income that you receive from a beneficiary fund is also exempt, up to $5,000, and a certain amount of your disability benefits. Child support and alimony payments that you receive are also exempt.
Group insurance policy benefits and proceeds, and annuities, too, are addressed in the Ohio bankruptcy exemption law. Your spouse’s life insurance proceeds are also safe, as well as proceeds that are protected by a spendthrift clause or other language preventing trust funds from being used to pay your creditors.
You may rely on a pension to supply your living; usually these funds are exempt if they are needed for support:
- IRAs
- Keoghs
- ERISA-qualified benefits
If you receive a pension from certain positions you have held, these may be exempt, such as the following:
- Public employee
- Public school employee
- State highway patrol
- Firefighter or volunteer firefighter
- Police officer
For a more comprehensive list of Ohio bankruptcy exemptions, visit our webpage.
