What Happens to My Home If I File for Bankruptcy in Ohio?

June 24, 2025

What Happens to My Home If I File for Bankruptcy in Ohio?

Filing for bankruptcy can bring much-needed financial relief, but if you’re a homeowner in Ohio, one of your biggest concerns may be what happens to your home. At Roderick Linton Belfance, LLP, we help Akron residents understand how bankruptcy affects homeownership and what steps can be taken to protect the place you call home.


Understanding Ohio’s Homestead Exemption


Ohio law provides homeowners with protection through a homestead exemption. This exemption shields a portion of your home’s equity from creditors during bankruptcy. As of 2025, the exemption allows you to protect up to $189,050 of equity in your primary residence. That means if your home equity is less than or equal to this amount, your home is typically safe from liquidation in a Chapter 7 case.


Chapter 7 vs. Chapter 13 Bankruptcy


The type of bankruptcy you file will impact how your home is treated:


  • Chapter 7 Bankruptcy
    This is a liquidation bankruptcy. If your home equity exceeds Ohio’s homestead exemption, the bankruptcy trustee may sell your home to pay creditors. However, if you’re current on your mortgage and your equity falls within the exemption, you’ll likely be able to keep your home.
  • Chapter 13 Bankruptcy
    This type allows you to reorganize debts and pay them over a 3-5 year period. Chapter 13 is often a good choice for homeowners behind on mortgage payments, as it allows you to catch up on arrears while keeping your home—even if your equity exceeds the exemption.


What If I’m Behind on My Mortgage?


In Chapter 7, falling behind on your mortgage often leads to foreclosure. However, Chapter 13 allows you to create a repayment plan that includes missed payments, giving you a chance to save your home.


Can I Keep My Home After Bankruptcy?


Yes, in many cases. Whether you keep your home depends on:


  • The amount of equity you have
  • The type of bankruptcy you file
  • Whether you are current or behind on mortgage payments
  • Your ability to make ongoing payments after filing


Bankruptcy doesn’t automatically mean losing your home. In fact, it can help you protect it—if you take the right steps.


Talk to an Akron Bankruptcy Attorney


At Roderick Linton Belfance, LLP, we understand how important your home is to your family and your future. Our team helps Akron residents navigate the bankruptcy process with a clear strategy to preserve homeownership whenever possible.

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