If you find yourself considering whether bankruptcy is the best way to address your debt problems, your biggest concern may be whether you will lose your house.
To understand your full range of options for debt relief and keeping your home, here are some things to consider about bankruptcy protection in Ohio.
The amount of equity in the home is the main factor that will determine whether you can keep the property.
The law in Ohio provides a homestead exemption under Chapter 7 bankruptcy. If you have remained current in your mortgage payments, and if your net equity in the home is not greater than the homestead exemption, there’s a greater likelihood you’ll keep the home.
However, it is crucial that your net equity is properly calculated. An experienced bankruptcy attorney can help you with this. Talking with a bankruptcy attorney can also clarify your options and help ease your mind.
Chapter 13 bankruptcy is essentially a repayment plan that allows people to keep the vast majority of their assets, which may include the house.
Under Chapter 13, debts are reorganized, and an affordable repayment plan lasting three to five years is established. As we discussed in a recent post, these payments are made to a trustee, who then distributes the money to the various creditors.
If you meet the payment obligations to the trustee while also remaining current with your mortgage payments, Chapter 13 allows you to keep your home.
Note: it is more likely that you will keep the house in Chapter 13 than in Chapter 7. Why? Because the amount of money you owe the lender is included in the repayment settlement.
Rauser & Associates Legal Clinic LLP has helped tens of thousands of people throughout Ohio achieve debt relief and stabilize their financial future. If you need to address a debt problem, speak with an experienced bankruptcy attorney to understand your full range of options.