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Ohio Changes Exemption Statute

By Kenneth M. Richards

After many years with no changes being made to Ohio’s exemption statute (O.R.C. 2329.66), Ohio has amended its exemption laws to revise and increase exemptions available to bankruptcy debtors and judgment debtors in Ohio. The law becomes effective on September 30, 2008 and would apply to bankruptcy cases filed on or after that date and to collection actions undertaken on or after that date.

An exemption allows debtors to keep certain property from the reach of creditors or a bankruptcy trustee. The amended law increases the homestead exemption from $5,000 to $20,200 and it increases the motor vehicle exemption from $1,000 to $3,225. The aggregate exemption for wearing apparel, household furnishings, and appliances has been increased to $10,775. The exemption for tools of the trade has been raised to $2,025 and the exemption on payments on account of personal bodily injuries is 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. This exemption has been increased to $1,075.

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