At Debra Booher & Associates Co., LPA., in Ohio, we understand that some people want to file for Chapter 7 bankruptcy in Ohio to find relief from debts, but losing certain assets would be devastating. For example, you may have an emotional attachment to a necklace left to you by your grandmother, a wedding ring from your deceased husband or a special set of earrings given to you by your children. However, your creditors are calling you every day, your wages are being garnished and you are in danger of losing your home. What can you do?
Fortunately, you do have options. The Ohio bankruptcy code allows exemptions on certain assets so that they do not have to be claimed in bankruptcy, and among these is a jewelry exemption. However, if your jewelry is valued at more than the amount allowed for the exemption, which changes from year to year but is generally between $1,300 and $1,500, the trustee may have to sell it to pay your creditors. Giving it to a friend or family member to hold until the divorce is final is not the answer, as hiding assets constitutes bankruptcy fraud.
If you decide to file Chapter 13 bankruptcy instead, you may keep your jewelry and still find debt relief. Under this type of bankruptcy, you design a repayment plan that allows you to pay for your secured assets such as your home and car, but those unsecured assets such as credit card debt and medical bills that your income does not cover will be discharged at the end of the payment plan.
More information about bankruptcy exemptions in Ohio is available on our webpage.