If you are having serious financial troubles and feel like you cannot get on top of your debt, then you may be considering bankruptcy. Taking this step, though, is serious. It can have far-reaching effects. You need to be aware of what will happen when you go to an Ohio bankruptcy court and how filing will affect your assets. This is especially true when it comes to your home.
Many people wonder if they will lose their home if they file. According to the Ohio Bar Association, you may be able to keep your home if you file Chapter 7 bankruptcy, but it depends on your situation.
If you are not behind on your mortgage payments and your mortgage is less than your home’s value, then you can likely keep your home. This is due to the homestead exemption that is offered under bankruptcy law. Exemptions are property that you can keep, depending on the value. The idea is you can use this property after filing to get your fresh financial start.
If you own your home, then you may be able to keep it if its value is within the exemption amount allowed by law. In some cases, if you are not current in your payments, you may also be able to keep your home, but this will need to be worked out with your lender.
If you own a home that you do not live in, you will likely lose it. The exemption only applies to your actual home where you or one of your dependents lives. This information is intended for educational purposes and is not legal advice.