Legal Question in Bankruptcy in Ohio

I feel I'm going to have to file bankruptcy - likely chapter 13. I'm trying everything I can to avoid this, but have now gotten behind on my mortgage in an effort to keep my car, and am forced to once again consider my options.

I had an initial consultation with an attorney a couple of months ago, but had gotten a couple of bad references for her, so if I file I will choose a new attorney.

I did learn that if I am upside down on my vehicle and the loan is old enough, the book value of the car will be used to determine the secured value, and the excess will be unsecured in a chapter 13.

I am now behind on my home and upside down on it as well. If I do a chapter 13, can I get my mortgage balance reduced in the same way as the automobile and still keep my house?

I will speak to an attorney if I decide to file. I'm just trying to know what I'm getting into.


Asked on 10/03/09, 6:38 pm

1 Answer from Attorneys
Patrick Conway Patrick J. Conway LLC

Unfortunatley, bankruptcy does not allow you to reduce the value of the first mortgage. The bankruptcy allows you to catch up the first mortgage but you cannot change the amount of the mortgage.

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Answered on 10/06/09, 9:00 am


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