Ohio Chapter 7 Bankruptcy Debtor’s Usually Can Keep Their Home
Lake, Geauga, Ashtabula, Lorain and Cuyahoga County residents in Ohio who are facing overwhelming debt may want to consider filing for personal bankruptcy under Chapter 7 of the Bankruptcy Code.
Often referred to as a “fresh start” bankruptcy, Chapter 7 is often the best solution to stop creditor harassment, prevent foreclosure, eliminate debts and begin reestablishing good credit. In addition, most of your assets will be safe from your creditors. Ohio law allows bankruptcy exemptions, including a homestead exemption, automobile exemption and cash exemption.
This means that Ohioans who file for bankruptcy can usually keep the homes that they live in so long as they are in good standing with their mortgage lender. Recent changes have been made to the homestead exemption to increase the maximum value of homes that qualify for the exemption. Typically, as long as your home does not have more than $132,000.00 of equity, it can be exempted from your bankruptcy creditors. This is good news for homeowners seeking Chapter 7 Bankruptcy relief.