Legal Question in Bankruptcy in Ohio

Re: Mortgaged property

You do not indicate whether you intend to make a chapter 7 or 13 filing. I'll assume you intend to make a chapter 7 filing, which means you are looking for a total discharge of your debts. In Ohio you are entitled to a $5000 exemption in a personal residence, which means you can have a $5000 interest, or equity, in your house. Based on the numbers you provided, it appears that you only have $5000 in equity. So the house can be exempted. Also if you are married, your spouse is entitled to the same exemption, if you are both filing for bankruptcy, thus $10,000 can be exempted. You cannot discharge the mortgages, because they are secured by the house and the mortgage companies will foreclose. Also, you would need to reaffirm with the mortgage companies. If the mortgage companies feel unsecured, they may foreclose, as your mortgage notes probably allows them to do so if you file for bankruptcy. As a practical matter however, as long as you are current, and continue to pay the mortgages on time, mortgage companies generally will not foreclose.