Exemptions

1
Exemptions

• Ohio Exemptions in Bankruptcy Cases
• Bankruptcy Law PAR 235
• Mike Brigner, J.D.

2
Resources

• Text, pp. 12, 23, 126-127, 165-171
• Bankruptcy Code 522
• Ohio Revised Code 2329.66
• Go to http//www.legislature.state.oh.us/laws.cfm

3
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
  debtors control
• Unless a creditor or the trustee objects to the
  debtors list of exemptions

4
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

5
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)

6
Ohio Exemptions

• R.C. 2329.66
• Applies to both (with a few exceptions)
  bankruptcy and ordinary Ohio court collection
  cases
• BR Trustee cant liquidate exempt property to pay
  creditors
• Judgment creditors cant 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 debtors equity, not
  propertys value

7
Comparison of Some Common Exemptions

• 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!

• Property
• House
• Car
• Jewelry
• Personal property

8
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

9
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

10
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

11
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

12
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

13
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

14
Exemptions

• Ohio Exemptions in Bankruptcy Cases
• Concluded
• Mike Brigner, J.D.