Ohio Homeowners Get Greater Protection In Bankruptcy

Daniel F. Gigiano's Bankruptcy Legal Blogs

Licensed for 24 years

Attorney in Wadsworth, OH

Daniel F. Gigiano

Serving Wadsworth, OH

Member at firm Daniel F. Gigiano, Co., L.P.A.

Serving Wadsworth, OH

In Ohio, you can now keep even more of your assets when you file for bankruptcy. Starting April 1, 2013, each person can keep up to $132,900 of equity in their home, which adds up to $265,800 for a married couple filing a joint bankruptcy. This is over five times more than people were allowed to keep before. This exemption was increased to $136,925 per person in 2016.

However, this law had many opponents who argued it only applied to debt that incurred after March of 2013, which meant the old protection of $21,625 per person would apply. First, a judge in Toledo stated that we should use the exemption of $132,900. Later, the judge of the Canton bankruptcy court also ruled that this exemption should apply without any limitations. Currently, it appears that this law is here to stay. Even if the opponents had won the day at the time, eventually their argument would have become moot, as very few bankruptcies would consist of debt entirely incurred prior to 2013.

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