Ohio Bankruptcy Laws - Operation of Law

According to Ohio Revised Code Section 2329.66(A), "Every person who is domiciled in this state may hold property exempt from execution, garnishment, attachment, or sale to satisfy a judgment or order, as follows: (1) (a) In the case of a judgment or order regarding money owed for health care services rendered or health care supplies provided to the person or a dependent of the person, one parcel or item of real or personal property that the person or a dependent of the person uses as a residence. Division (A)(1)(a) of this section does not preclude, affect, or invalidate the creation under this chapter of a judgment lien upon the exempted property but only delays the enforcement of the lien until the property is sold or otherwise transferred by the owner or in accordance with other applicable laws to a person or entity other than the surviving spouse or surviving minor children of the judgment debtor. Every person who is domiciled in this state may hold exempt from a judgment lien created pursuant to division (A)(1)(a) of this section the person's interest, not to exceed five thousand dollars, in the exempted property. (b) In the case of all other judgments and orders, the person's interest, not to exceed five thousand dollars, in one parcel or item of real or personal property that the person or a dependent of the person uses as a residence."

Operation of Ohio bankruptcy laws

In practice, creditors may file objections with Ohio bankruptcy courts regarding the extent of the exemption, designation, and liens which arise through operation of law. Ohio bankruptcy courts are wary of all sales to insiders before and during the pendency of all cases. Also, home improvement loans which draw down equity before filing are scrutinized under both the state fraudulent conveyance statutes and federal fraudulent conversion statutes. A trustee, creditor, party in interest, or the court on it's own motion may file objections.

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