Legal Question in Bankruptcy in Ohio

Re: If too much equity- how long until I have to move out?

If you still have a mortgage on your home, you need to deduct the total amount you owe from the APPRAISED value of your home to get the total amount of equity. In other words, if your home is worth $50,000 and you owe $60,000 on it -- you have NO EQUITY.

However, after doing the math, the exemption allowance in Ohio for equity in a home is $5,000 per person. If you and your spouse file, there is a $10,000 exemption.

Re: If too much equity- how long until I have to move out?

In a chap. 7, a debtor will be able to keep $5,000 worth of equity in a house (married couples: $10,000). But "equity" isn't just the difference between the market value and the mortgage: costs of sale, etc. must be considered, so you might have less "equity" than you think. And, if you have excess equity, you can keep the house by either paying an agreed sum to the chapter 7 trustee, or by filing a chapter 13. If you have little or no equity (or negative equity) and decide not to keep up your mortgage payments, the mortgage holder must seek permission from the bankruptcy court to proceed with foreclosure (relief from stay). This process and the foreclosure could take many months or up to a year or more, depending upon how quickly the mortgage holder acts.

If you'd like to discuss these options more fully, I'd be happy to set up a no cost conference at my Cincinnati or Northern Kentucky office. Just call 859-261-6811 or 513-621-2201.