Although filing for Chapter 7 bankruptcy generally involves the sale of your assets to repay your debts, the federal and state bankruptcy laws provide considerable protection to individual debtors filing for relief.

An automatic stay provision in Chapter 7 of the U.S. Bankruptcy Code stops creditors from collection efforts while a bankruptcy case is pending.

Moreover, Ohio law (Ohio Revised Code Section 2329.66) lists common exemptions that protect the assets of Ohio resident debtors in Chapter 7 bankruptcy.  Some of the exemptions are:

1.  Bankruptcy debtors can exempt their interest in one parcel or item of real or personal property that is used as a residence up to a value of $145,425. This exemption can apply to a house or a mobile home.
2. Debtors can exempt a motor vehicle up to a value of $4000.
3. Bank accounts, public utility security deposits, rent deposits, and tax refunds are exempt up to a value of $500.
4. Household goods and furnishings, clothing, appliances, books, animals, crops, musical instruments, firearms, and hunting and fishing equipment are exempt up to $625 for a single item or $13,400 in total or aggregate value.
5. One or more pieces of jewelry are exempt up to a total value of $1700.
6. Professional books or tools of trade are exempt up to a total value of $2550.
7. A wildcard exemption can be used to protect any property up to a value of $1325.

The exemption amounts are increased from time to time based on the Consumer Price Index, a standard published monthly by the U.S. Bureau of Labor Statistics.

These exemptions are among the items Ohio residents should consider when deciding whether to file for protection under the bankruptcy laws.

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Kellie S. Rogers, a lawyer in the Salem office of Harrington, Hoppe & Mitchell, represents individuals and businesses in bankruptcy matters. She also provides counsel and advice on issues related to Social Security, Workers’ Compensation, estate planning, probate administration and family law. You can reach her at krogers@hhmlaw.com or (330) 337-6586. HHM is a debt relief agency, as it helps people and businesses file for bankruptcy relief under the U.S. Bankruptcy Code.