Values For Ohio Bankruptcy Exemptions

The state of Ohio retains exclusive jurisdiction over the value amounts provided by the Ohio bankruptcy exemption law. Even though filing in federal court, state regulations are incorporated by reference through the Code, and set the upper most value restriction for included categories. Because the state value assessments are excessively low compared to average states, the method of appraisal becomes even more important for Ohio residents. The lower the appraisal, the great amount of property allowed for each category. Yet only legally conforming appraisals are allowed, and are reviewed for strict compliance with federal law, rules, and case opinions.

The proper method of appraisal is not based upon the maximum proceeds available if sold by a professional seller. Neither may debtors adopt the lowest possible justifiable appraisal value. In practice, the proper method of appraisal for fungible property is based on net liquidation proceeds, after deducting costs of seizure, appraisal, auction , accounting and reporting results to the Ohio bankruptcy court. If the best interest of creditors would be served, and seizure justified on a cost-benefit basis, the trustee and/or objecting creditors are assigned the burden of proof when contesting values assigned by debtors or their attorneys.

See also: Ohio Homestead Exemption.