Ohio homeowners who are struggling with serious financial challenges may understandably be considering filing for bankruptcy. The debt relief that may be achieved through a bankruptcy filing has helped countless people move forward passed their debts and develop stronger financial futures. However, for those people who own homes, it is important to understand how a mortgage factors into the bankruptcy equation.
As Quicken Loans explains, people who file for Chapter 7 bankruptcies may be forced to let their homes go back to the banks if the home is considered nonexempt. This means it does not meet the criteria for the value amount under which debtors are allowed to keep assets. The option to keep a home here is to pay the full mortgage value in cash. Given that when filing for bankruptcy, finances are generally tight, this is not often a viable option for most people