Carrying enormous amounts of debt is no way to live. It can be the cause of endless worry and stress, leaving you and your family unable to fully enjoy the simple pleasures of life.
While it is likely that you have considered the different options available as a debtor in the state of Ohio, you may have come to the conclusion that you would not want to go through the process of bankruptcy if it means losing your house and car.
If you have dependent children, it is probable that you want to rid yourself of your debts without it having a big impact on their quality of life and sense of stability. Many families are surprised to learn that it is possible to go through the process of bankruptcy without needing to uproot your family from their home. Under certain bankruptcy chapters, you can keep your home and other large assets while working to pay off your debts in a sustainable manner.
Filing for bankruptcy and keeping your home
The two most popular types of bankruptcy filings for private individuals are Chapter 7 and Chapter 13. They differ in the amount of exemptions they offer. Out of the two, Chapter 13 bankruptcy filings are much less strict and confining. If you decide to make keeping your house a priority, it is likely to be possible under Chapter 13.
While Chapter 7 is stricter in terms of what assets you are allowed to keep, it is still possible that you would be able to keep your house. However, it depends on the amount of equity that you have in your home and the repayment terms on your mortgage.
One of the biggest risk factors for not being able to keep your home while filing for bankruptcy is not being able to afford your mortgage. The mortgage repayments may severely impede your ability to pay off other debts, and in this situation you may be forced to foreclose.
If your goal is to rid yourself of debts while keeping your home in the state of Ohio, it is a good idea to learn more about the different bankruptcy Chapters.