If you are planning to file bankruptcy or have already done so, you may be wondering what will be considered an asset.
An asset is anything of value that you own, including real estate, motor vehicles, bank accounts, investment accounts, furniture, jewelry, firearms, cash, books, stocks, pets and collectibles. Assets are also things that you have not received physical possession of yet, such as book royalties, property you have loaned to someone else or a security deposit you gave to a landlord.
What Happens To My Assets In A Chapter 7 Filing?
Assets are treated differently depending on the type of bankruptcy you file. In a Chapter 7 filing, the bankruptcy trustee assigned to your case can take control of your assets and sell them for cash to pay off your debts.
Fortunately, you can exempt some of your assets from a Chapter 7 bankruptcy filing so they cannot be taken and sold.
The State of Ohio allows Chapter 7 filers to exempt a variety of assets from the bankruptcy, according to Ohio Revised Code 2329.66. Dollar amounts for each exemption were updated in 2016 and apply to all judgments or orders filed between April 1, 2016 and March 31, 2019, according to the Ohio Judicial Conference.
The State of Ohio allows you to exempt up to $136,925 of value in one piece of real estate that you or a dependent use as a primary residence.
You can exempt up to $475 in cash, including cash on hand, from tax refunds, or in a bank or credit union account.
According to Ohio Revised Code 2329.66(A)(2), you can exempt up to $3,775 of value in one motor vehicle.
This includes furnishings, appliances, books, animals, crops, musical instruments, firearms, and hunting and fishing equipment held primarily for personal, family or household use of one person. You can exempt up to $600 in value per item or $12,625 in aggregate value.
State law allows you to exempt up to $1,600 of value for jewelry.
Professional Books Or Tools Of The Trade
You can exempt as much as $2,400 in value for professional books or tools or a person’s trade, profession or business.
Personal Injury Award For Bodily Injury
You can exempt up to $23,700 for a personal injury award, excluding compensation for pain and suffering.
Aggregate Interest In Property
You can use this for any type of property. You can exempt up to $1,250 in value.
What Happens To Assets In A Chapter 13 Bankruptcy?
One of the biggest advantages to a Chapter 13 filing is that your assets are not at risk of being liquidated. In fact, if your home is in foreclosure, filing Chapter 13 bankruptcy will put a stop to foreclosure proceedings.
Unfortunately, filing Chapter 13 is not an option if you have more than $383,175 in unsecured debts and more than $1,149,525 in secured debts. Filing Chapter 13 is also not a good idea if you lack sufficient income to make monthly payments on your debts, which will be required in your Chapter 13 repayment plan.
If you feel bankruptcy is right in your situation, you need a skilled attorney on your side who can protect your assets while helping you get out of debt. For bankruptcy assistance, contact the O’Connor, Acciani & Levy today.
Schedule your free, no obligation consultation to learn more about how we can help you.