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Ohio Considers Changes to Exemption Statute

By Kenneth M. Richards

After many years with no changes being made to Ohio’s exemption statute (O.R.C. 2329.66), a bill is pending in the Ohio General Assembly which would revise and increase exemptions available to bankruptcy debtors and judgment debtors in Ohio. An exemption allows such debtors to keep certain property from the reach of creditors or a bankruptcy trustee.

The proposed law would increase the homestead exemption from $5,000 to $20,200 and it would increase the motor vehicle exemption from $1,000 to $3,225. The aggregate exemption for wearing apparel, household furnishings, and appliances would increase to $10,775. The exemption for tools of the trade would be raised to $2,025 and payments on account of personal bodily injuries would be increased from $5,000 to $20,200.

For debtors in bankruptcy, Ohio law currently allows a “wild-card” exemption of $400 which can be applied to any asset. Under the pending bill, this exemption would be increased to $1,075, plus up to $10,125 of any unused amount of the homestead exemption.

The law would also provide for automatic adjustments to exemption amounts every three years to reflect changes in the Consumer Price Index.

This law, if enacted, would have a significant impact on bankruptcy debtors, judgment debtors, and their creditors. Check back for updates on the status of this legislation.