W. Travis Garrison Bankruptcy Law Blog on Lawyers.com

Will I Lose My House if I File Bankruptcy?

Friday, December 18, 2009 by W. Travis Garrison

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Ohio Bankruptcy Lawyers

Will I Lose My House if I File Bankruptcy?

At Cupps & Garrison, Columbus bankruptcy attorneys, we hear this question a lot.  “If we file bankruptcy, will we lose our home?”  The short answer is:  not necessarily; it depends on your situation and the type of case you file.

If you have no equity in your home—that is, the value your home is less than the valid mortgages, tax liens, judgment liens, and other encumbrances on your home—the Trustee will likely abandon that property to you.  You’ll be able to retain your home as long as you continue to make the payments. 

Even if you have some equity in your home, the Trustee might still abandon that property to you.  Ohio law says that up to $22,200 of a person’s equity in his or her residence is exempt from the bankruptcy estate.  Joint debtors could exempt up to $22,200 each—or $44,400 total—of equity in their residence.  This is value that you would retain after your bankruptcy.

Even if you are behind on your mortgage payments, you may still be able to save your home.  If you file a Chapter 13 bankruptcy in Ohio, you’ll submit a plan to pay back your creditors a certain portion of the debts you owe them over a period of three to five years.  During this time, you’ll be able to cure any arrearage on your mortgage and bring your payments current.

In certain circumstances, judgment liens placed on your residence may be avoided and discharged in bankruptcy.  Please contact an experienced bankruptcy law firm in Columbus for a detailed evaluation.

Cupps & Garrison, LLC
35 East Gay Street, Suite 402
Columbus, OH 43215
Phone: 614-441-8603

 
Posted at 18:57 PM
Topic: Bankruptcy
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