Reader’s Question: I want to pay off 10,000 in charge cards but keep my home. Is this possible?
Ohio Bankruptcy Attorney Russ Cope’s Answer
Either Chapter 7 or Chapter 13 will allow you to address the $10,000 charge card debt. Chapter 7 will eliminate the debt completely, assuming you meet the eligibility requirements to file for Chapter 7 relief. Chapter 13 bankruptcy will allow you to repay a percentage of the debt and eliminate the remaining percentage, if any.
You can absolutely keep your home in a Chapter 13 bankruptcy. In Chapter 7, you can keep the home so long as a couple of things are true. First, you have to be current on the mortgage note or have the ability to become current rather quickly. Second, you mustn’t have too much equity in the real estate. In Ohio, the equity must be substantial. New laws passed in 2013 increased the amount of equity that an individual can have in their residence by nearly 500%.
It is important to remember that bankruptcy is very predictable. An experienced bankruptcy attorney can evaluate your circumstances and tell you exactly how filing will effect your property and your debt.