Ohio Passes New Law Allowing You To Protect More Property And Eliminate More Debt
By Eric A. Stamps, Attorney at Law
On December 20, 2012, Governor Kasich signed into law a measure that significantly increases the value in your home that is protected (exempted) from creditors being able to get. The new law takes effect on or about March 27, 2013. When a person is filing bankruptcy the amount of property protected is a major concern for most people. The property that is protected is called an exemption or exempt property. Currently, a person is able to protect $21,625.00 in the home in which he or she lives. If the home is jointly held the exemption applies to each person. Therefore, a husband and wife who jointly own their residence are able to each protect $21,625.00 for a total of $43,250.00. For example, if the couple owns real estate worth $100,000.00 and they owe $40,000.00 on a mortgage, then they have total equity of $60,000.00. Only, $43,250.00 is currently protected from creditors getting it. That leaves $16,750.00 of unprotected equity.
If the owners filed for a fresh start bankruptcy (Chapter 7) then they likely would lose the home because of the excess or unprotected equity. If they filed to reorganize (Chapter 13) then they would be required to pay back to the creditors an amount equal or greater than they unprotected equity (in this case $16,750.00). Thanks to the new law, that’s all about to change. The new exemption amount is more than five times greater than the current amount. The new amount of $125,000.00 per person ($250,000.00 if jointly owned) takes effect March 27, 2013. This allows the owners in the above scenario to protect the entire interest in the home. Also, this allows the owners to eliminate more debt that would have been required to pay back if not for the new exemptions.
If you have debts that are causing you stress, sleepless nights, or worry, now is the time to contact my law firm for a free consultation to explain your rights and how we can help you eliminate your debt and keep your assets. Contact us today at (937) 247-6447 or via email at firstname.lastname@example.org for a free consultation. For more information, visit us on the web at www.stampsbankruptcylaw.com.