At Rauser & Associates Legal Clinic LLP, we understand the stress and worry that accompany financial peril. We have helped more than 40,000 clients discharge millions of dollars of debt through bankruptcy. Clients trust our knowledge, experience and thorough understanding of the Bankruptcy Code and rules. If you are considering filing for bankruptcy, but are concerned about losing your house, do not make a decision until you talk to a lawyer.
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Individuals facing dire financial straits often resist filing for bankruptcy because they do not understand the benefits and protections available. Whether they have received information from friends, family or television commercials, chances are good that the information is not always completely accurate. The best way to learn about your financial options and the protection afforded by the United States Bankruptcy Code is to discuss your matter with an experienced Ohio bankruptcy attorney.
Can You Keep Your Home In Bankruptcy?
The main determining factor in whether you will be able to keep your property is the amount of equity in the home. Combined with your ability to remain current in your mortgage payments, you will likely be able to keep your home in bankruptcy. Ohio law provides a significant exemption enabling most to proceed with Chapter 7 even if there is equity in a residence. There are subtle differences between the filing of a Chapter 7 bankruptcy and a Chapter 13 bankruptcy.
- Chapter 7: Also referred to as liquidation bankruptcy, Chapter 7 provides protection from creditors. Included in the Ohio exemptions, the state provides a homestead exemption under Chapter 7. Your bankruptcy trustee will be obligated to liquidate nonexempt assets to pay creditors. If your net equity in the home does not exceed the exemption, and you have remained current in your mortgage payments, you are more likely to keep your home. It is important to work with a skilled bankruptcy lawyer to ensure that your net equity is properly calculated so you can make the most informed decision possible.
- Chapter 13: As a debt reorganization and repayment plan, Chapter 13 bankruptcy allows individuals to keep the vast majority of their assets as long as they are willing to make the agreed-upon payments. It is more likely that you will be able to keep your home in Chapter 13 than in Chapter 7 because the bankruptcy trustee will include the amount of money you owe the lender in the repayment settlement. Over the course of the repayment period, you must not only meet the trustee's payments, but also remain current in your mortgage payments.
If you have further questions about protecting your house through the bankruptcy process, contact any of our convenient Ohio offices by calling 888-843-5787. Offices in Columbus, Cleveland, Akron, Youngstown, Canton and throughout Ohio. Someone is available six days a week to discuss your options.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.