We are bankruptcy attorneys located in Middletown, Ohio. We specialize in Chapter 7 and Chapter 13 bankruptcy filings.
Home ownership, the American dream, the white picket fence, everything perfect just the perfect home, everyone dreams about it. Some are lucky enough to achieve the dream. But home ownership does come at a cost. There are increased utility bills, lawn maintenance, home maintenance and before you know it you can be in over your head just from trying to keep your home updated and keep up with life. So, what happens when you achieve the dream and run into financial difficulty? In most cases you can keep your home even if you decide to file for personal bankruptcy.
CHAPTER 7 BANKRUPTCY AND YOUR HOME
Chapter 7 bankruptcy also referred to as straight bankruptcy or liquidation bankruptcy is a process where you would be able to discharge all of your unsecured debts under the federal code. Chapter 7 is referred to as a liquidation bankruptcy because the trustee may take some of your assets and sell them to pay your creditors. However, for your home in Ohio there is a large homestead exemption of $132,900.00 per individual. So as long as you do not have more than $265,000.00 (for a married couple) equity in your home the trustee would not be able to take and sell your home. To keep your home in Chapter 7 the main rule is that you are current on your house payments when the case is filed. As long as you are current and do not have too much equity in your home you will be able to keep your home under Chapter 7. Under Chapter 7 if you wish to keep your home you would sign a reaffirmation agreement on your home, signing this document deems your debt with the mortgage non-discharged and they will continue to report your payments to the credit reporting agencies.
If you keep your home and are behind on your real estate taxes these will have to be taken care of outside of the case as these are not able to be discharged through bankruptcy.
CHAPTER 13 BANKRUPTCY AND YOUR HOME
If you have too much equity in your home or are behind on your mortgage payments you can save your home through a Chapter 13. A Chapter 13 bankruptcy is a repayment plan. You will have a period of three to five years to pay back a portion of your unsecured debts. If your home is in foreclosure you can file for Chapter 13 and this will stop the foreclosure process. You will then make your regular house payment and your arrears payment through the Chapter 13 Trustee. Once you complete your case you will be current on your home and will make your payment yourself.
For more information check out our website at www.middletown-bankruptcy.com.
Call our office today for your free consultation with one of our bankruptcy attorneys. We offer a free consultation, fair fees and monthly payment plans.