Ohio Homestead Laws

Filing for bankruptcy doesn’t automatically mean that you’ll lose your home. While the bankruptcy trustee can sell your home to pay off your creditors, you may be able to claim your state homestead exemption to keep that from happening. In general, the homestead exemption protects some or all of the equity you have in your principal place of residence. As far as state aid goes, the Ohio homestead exemption is exceptionally generous.

This article examines and explains how the homestead exemption works in the state of Ohio. It also clarifies how much the homestead exemption is and how you can qualify for the exemption.

Any Ohio residents contemplating bankruptcy should consider contacting a local bankruptcy attorney before filing. They’ll review your case and help you determine if you can protect your home in bankruptcy.

Overview of the Homestead Exemption

The homestead exemption exists to help homeowners protect their primary residence when they file bankruptcy. Usually, the exemption applies to Chapter 7 bankruptcy cases, but it is available to people who file Chapter 13 as well.

The homestead exemption doesn’t protect your real property. Instead, it protects the equity you have in the property. Imagine that you have a house worth $300,000. Over the years, you’ve managed to accrue $200,000 in equity. Depending on where you live, the homestead exemption may be much lower than the amount of equity.

If the homestead exemption in the above example is only $30,000, the rest of your equity ($170,000) will be at risk. The trustee may decide to sell the property for $300,000, pay off your creditors, and give you whatever remains after paying your mortgage in full.

Ohio Homestead Exemption: Overview

Like most states, Ohio offers debtors certain protections when they file bankruptcy. One of the most important is the homestead exemption. Ohio has robust protections, which is good news for Ohioans.

Why? Ohio is an “opt-out” state, which means that your only option is to submit a state homestead exemption application. While you can’t claim the federal homestead exemption, Ohio’s homestead exemption is much higher than the federal homestead exemption and that of most other states.

Ohio Homestead Exemption Limits

According to the Ohio Revised Code, the homestead exemption for a debtor who files bankruptcy in Ohio is $182,625. This amount is as of 2026. This means you can protect up to $182,625 in equity in your principal place of residence. Married couples in Ohio who file a joint bankruptcy can claim a double homestead exemption, for a total of $365,250.

Is the Exemption Higher for Disabled Homeowners and Older Adults?

Ohio does not provide an enhanced homestead exemption for disabled persons. Nor does it offer a higher homestead exemption for senior citizens over 65 years of age.

What Types of Property Are Eligible for the Homestead Exemption?

Certain rules apply when a debtor wishes to claim the homestead exemption. If you don’t meet the eligibility requirements, you won’t be able to apply the exemption, and your house will be vulnerable to sale.

Some of the requirements for Ohio’s homestead exemption include:

• You must have lived in Ohio for at least two years (730 days)
• The homestead exemption only applies to your primary residence
• You must own the property at the time of filing
• The exemption does not apply to any property that is the subject of a fraudulent conveyance

Under Ohio law, a homestead can be any type of residential property, as long as it is your permanent residence. This includes the following:

• Single-family home
• Condominium
• Mobile home
• Manufactured home

If you aren’t sure if your property is eligible for the Ohio homestead exemption, contact a local bankruptcy attorney. They’ll review your assets and debts and let you know whether your home is protected.

Differences Between the Homestead Exemption and the Homestead Property Tax Exemption

They sound alike, but you don’t want to confuse the homestead exemption in bankruptcy with the homestead property tax exemption. The homestead exemption in bankruptcy helps protect the equity you have in your primary residence. Chapter 7 filers face the possibility that the trustee will sell their home to pay creditors.

By applying your state homestead exemption, you will protect some or all of the equity in your home. If the amount of equity you have in your house is less than the state homestead exemption limit ($182,625/$365,250), the trustee cannot sell your property.

Ohio’s homestead property tax exemption is meant to reduce the assessed value of your home for tax purposes. The amount may change depending on the tax year. This tax reduction lowers taxpayers’ overall property tax bills.

Ohio’s Property Tax Homestead Exemption Program

In addition to providing protection for your principal place of residence during a bankruptcy, Ohio law also offers tax relief through its homestead exemption program. The program is designed to help people who may have trouble paying the full property tax.

Ohio’s homestead exemption program is available to the following individuals:

• Senior citizens
• Disabled veterans
• Public service officers injured or killed in the line of duty and their surviving spouses.
• People with a service-connected disability (military)

To qualify for this program, you must complete the application form and submit it to the county auditor’s office. The application requires that you provide the following information:

• Modified adjusted gross income
• Certificate of Disability showing your disability rating (if you are a disabled person)
• Proof of age
• Total income/Household income
• Copy of your driver’s license

The bankruptcy homestead exemption is different from the property tax homestead exemption. If you have questions about either program, contact an Ohio bankruptcy attorney or tax attorney

Seek Legal Advice From an Experienced Ohio Bankruptcy Attorney

If you’re thinking about filing bankruptcy but are worried that the bankruptcy court will force you to sell your home, consult an Ohio bankruptcy attorney. An attorney will examine your situation, determine if bankruptcy is your best option, and offer alternative methods of debt relief if applicable. If bankruptcy is the way to go, they’ll ensure you file your papers properly and help you maximize your protection under the state and federal bankruptcy laws.