Exemptions
Ohio Exemptions in Bankruptcy Cases Bankruptcy Law PAR 235 Mike Brigner, J.D.
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Resources
Text, pp. 12, 23, 126-127, 165171 Bankruptcy Code § 522 Ohio Revised Code 2329.66
Go to: http://www.legislature.state.oh.us/l aws.cfm
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Definition
Exemptions are those interests that a debtor is allowed to keep and not make subject to creditors’ claims Exempt property is also not subject to liquidation by the trustee
ALL property is considered property of the BR estate upon filing Then the Trustee abandons exempt property to debtor’s control Unless a creditor or the trustee objects to the debtor’s list of exemptions
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Exemption Rules
Exemptions may be claimed in Chapters 7, 11, 12, 13 Most important in Chapter 7, to prevent Trustee from taking property May be claimed by individuals only, so unlikely in Chapter 11 In joint filing, both H & W can claim a set of exemptions,
So amounts are doubled for jointly owned property
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Federal Exemptions
11 U.S.C. § 522(d) Congress set federal exemptions See text page 168, Exhibit 8.4 But, Congress allowed states to “opt out” of this law and create their own exemptions Ohio is an opt-out state (& so are 37 other states)
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Ohio Exemptions
R.C. 2329.66 Applies to both (with a few exceptions) bankruptcy and ordinary Ohio court collection cases
BR Trustee can’t liquidate exempt property to pay creditors Judgment creditors can’t seize exempt property to satisfy debt in non-BR cases
Law does not exempt specific items of property; it exempts dollar amounts in specific types of property Exemptions apply to debtor’s equity, not property’s value
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Comparison of Some Common Exemptions
Property House Car Jewelry Personal property
Federal $14,725 $2,775 $1,150 $9,300
Ohio $5,000 $1,000 $2,000 for jewelry + pers. prop. But only $1,500 if a real estate exemption is claimed!
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Compare
On those 4 major items: Federal law allows $27,950 Ohio allows $7,500 to $8,000 New York specifically exempts one television set! (Modern necessity?) Florida exemption for house you live in + its real estate is UNLIMITED
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Review Ohio Exemptions Statute
R.C. 2329.66 (A)
(1)(a) Ignore (non-bankruptcy) (1)(b) Real estate $5,000 (2) One Vehicle $1,000 (3) Clothes, bedding, $200 each; Stove & refrigerator, $300 each (4)(a) Cash $400 (4)(b) Furnishings, etc. $200 each (4)(c) Jewelry $400 for one, $200 each for rest
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Review Ohio Exemptions Statute
R.C. 2329.66 (A)
(4)(d) - Limits on (4)(b)&(c):
$2,000 if no real estate $1,500 if r/e exemption claimed
(5) Books & tools $750 total (6) Insurance ALL (7) Health aids ALL (8) Burial lot ALL (9) & (10)(a)&(b) Benefits ALL
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Review Ohio Exemptions Statute
R.C. 2329.66 (A)
(10)(c) IRAs ALL (10)(d) Keogh Plan ALL (11) Spousal/child support ALL (12) Damages & injury ALL past yr (13) Personal earnings ALL (14) Partnership property ALL (15) Notary seal ALL
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Review Ohio Exemptions Statute
R.C. 2329.66 (A)
(16) Tuition credit ALL (17) Any other federal exemptions, but Ohio opts out of bankruptcy exemptions (18) “Wild card” – extra $400 in any other property in a bankruptcy case
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Bankruptcy Schedule C
See sample, text p. 169 Debtor must
Describe all property claimed as exempt Give law creating the exemption, by code section State current market value of property State value claimed as exempt
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Exemptions
Ohio Exemptions in Bankruptcy Cases Concluded
Mike Brigner, J.D.
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