Ohio Public Benefit Exemption for Bankruptcy

The state of Ohio provides some special exemptions to normal Chapter 7 bankruptcy procedures that can help debtors receiving public benefits. These exemptions help cover the variety of income sources a person may collect from if they are eligible to receive assistance. Considering that these forms of public benefit income can prove crucial for a person’s financial stability, the state does not target these forms of income when the debtor files for bankruptcy.

Unemployment benefits are a major concern for many debtors, as this compensation may be virtually the only type of income a person receives. Unemployment compensation is a major part of many Americans’ lives, as economic trends have made it difficult to gain lasting employment. However, the state of Ohio allows debtors to file for a public benefits exemption that will protect their unemployment payments.

In addition to unemployment benefits, workers’ compensation may be a crucial source of income when a person cannot go back to work. Compensation for injuries sustained at work can help to cover serious injuries that may leave a person out of their job for a substantial amount of time.

Compensation benefits for crime victims are also protected by Ohio’s bankruptcy exemptions. However, these benefits must be received by the victim a full year prior to filing for the exemption.

If you are facing bankruptcy, public benefits may be an extremely important source of income for you. The state does provide some protection from Chapter 7 proceedings for this income. To learn more about your rights and options during bankruptcy, contact Cincinnati bankruptcy exemption attorney Ryan J. Ruehle Attorney at Law, LLC, by calling 513-777-0880 today.