After a creditor has obtained a judgment against a debtor, the creditor must normally initiate some action in order to receive money, or goods to satisfy the claim. States generally recognize that certain items belonging to the debtor are not available to the creditor for the satisfaction of the judgment. Generally referred to as exemption statutes, these provisions bring into focus the legislature's concern for balancing the right of a creditor to have what he deserves against the debtor's need to maintain a subsistence level in society.
In order to effectuate this balance, several purposes for exemption statutes have been identified. Exemption statutes should protect the debtor, the debtor's dependents, and the family unit. Exemption statutes should also aid in the education and rehabilitation of the debtor to avoid the reoccurrence of the situation, and direct the debtor back into productive society. Exemption statutes also help the debtor avoid social aid and bankruptcy.
In 1979, both Congress and the Ohio Legislature revised their exemption laws. Congress revised the exemption laws which apply to debtors in bankruptcy, but allowed each state to specifically reject the federal exemptions and replace them with the state's exemptions. Ohio has exercised this option. H.B. 674 provides exemptions for Ohio debtors in bankruptcy court as well as in state court for the execution of judgments.
This analysis will examine the specific provisions of Ohio's new exemption laws and compare these with Ohio's former laws, the federal exemptions, and the Uniform Exemptions Act. Ohio's new provisions will also be scrutinized in light of the general purposes of exemption laws.
Todd, Gregory Keith
"H.B. 674: Ohio Opts Outs of the Federal Bankruptcy Exemptions and Revises Its Exemption Laws,"
University of Dayton Law Review: Vol. 5:
2, Article 12.
Available at: https://ecommons.udayton.edu/udlr/vol5/iss2/12