At Debra Booher & Associates Co., LPA, in Ohio, we understand that worries over housing may be a major concern for anyone considering filing Chapter 7 bankruptcy. After all, if you lose your house, you must find a new place to live and move during a time when you are already struggling. You may be able to forego this stressful experience and keep your home, though, thanks to the Ohio bankruptcy homestead exemption.
If you have been struggling to pay your credit card debt or medical bills, but you have always made your house payment on time, you may be able to stay in your home, according to the Ohio State Bar Association. However, you must meet one of these other conditions, too:
- You owe the mortgage holder more than the house is worth
- You have equity in the home, but it is less than Ohio’s current homestead exemption
Home equity is the sale value of the real estate (not the amount you paid for it) minus the amount of the mortgage you still owe. The exemption limit changes occasionally, but generally, if you and your spouse own the home jointly, then the exemption limit doubles.
Even if your equity is over the limit, your trustee or creditor could determine that the process of selling the home would take too much time and money, and it would not be worth the effort involved to go that route.
More information about property exemptions that are available to Chapter 7 bankruptcy filers is available on our webpage.