The bankruptcy courts in Ohio understand that by declaring bankruptcy, you are seeking a fresh start. However, without certain assets, such as a home and a vehicle, some people's fresh start could become as challenging as their struggle with overwhelming debt. At Debra Booher & Associates Co., LPA, we help our clients understand how exemptions are designed to ensure that they are able to take advantage of the benefits of bankruptcy without losing all of their resources.
When it comes to your home, that is, the real property where you actually live and not a rental or vacation property, you are allowed an exemption up to a certain limit. This amount fluctuates based on inflation, but it is generally around $125,000, and may currently be more. Factors such as how much your home is worth and how much equity you have in it may affect your exemption, as well.
Likewise, the exemption for your vehicle has a fluctuating value limit of around $3,500. A loan may also complicate the process of determining whether your vehicle meets that limit, with considerations such as whether the amount you owe on it exceeds its value.
You may also have the option to reinstate your mortgage or vehicle loan. In either situation, if you owe more than your home or car is worth, it may not be a good option for you. On the other hand, it may also depend on your ability to make the payments versus how difficult it would be for you to find a new place to live or a reliable vehicle.
More information about Ohio bankruptcy exemptions is available on our webpage.