Know your State's Bankruptcy Exemptions and use them to plan your Bankruptcy  -- if you have time to wait.  Similar to tax planning, it is not illegal to plan your Bankruptcy to protect the most assets possible.

    Click on flag to go to the statutory language  for most of Ohio's Bankruptcy Exemptions: 

    Basically, your house is protected by an amazing $145,425 equity exemption (double numbers if you are married); your car is protected by a $4,000 equity exemption; your cash is protected by a $500 exemption; and your household goods and furnishings including audio, video and computer equipment is protected for $625 apiece, fair market value (not what you paid for it), up to a total of $13,400.  That is why most attorney's say their clients are usually able to keep most of their household goods and possessions.  Ohio also gives you a $1,325 "Wild Card" exemption good on anything.

    Value your goods at fair market, private party value (usually less than you paid for the item).

EXEMPTIONS:

HOUSE: $145,425 per person.

CAR: $4,000 per person.

FEDERAL TAX REFUND: Earned Income Credit and Additional Child Tax Care Credit: 100%. Withholding are prorated to date of filing, then subject to your unused cash and wildcard exemptions (less rental deposit, medflex, etc.). This is also subject to the trustee's economic feasibility projection (is it worth the trustee's time to administer a really small dividend).

HOUSEHOLD GOODS AND POSSESSIONS: Each item less than $625, all told $13,400.

Tools of Trade for Self-Employed: $2,550 per person.

Jewelry: $1,700 per person.

Cash at time of Filing: $500.

Wild-Card for anything: $1,325.
 
 

    In Ohio, one of the best ways to re-characterize cash, if you are too cash rich to file Bankruptcy, is to buy a house or mobile home.

    Equity means what your house or car is worth after the loan is paid in full.  If your house or car is "upside-down," then you are OK.  Upside down means you owe more than the property is worth.

    If you're unsure, ask your lender what the pay-off is on the property and have a realtor do a market analysis for you or do your own blue-book appraisal on your car.

    If you recently paid around $6,000 cash, or if your car blue-books for that amount, you should be OK.  You can Blue Book your car yourself at KBB.com by typing in the year, make, model, and mileage.  You can also use your $1,325 wild card for a total of $5,325.00. Your $675 exemption "bust" will probably not be enough, in and of itself, for it to be "economically feasible" for the trustee to take and administrate to your creditors.

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