Minnillo & Jenkins, CO. LPA
Hyde Park, Eastgate, Fairfield, Covington: 513-723-1600
Portsmouth: 740-300-2022
Call For A No-Pressure, Free Consultation

Ownership of a house is not necessarily lost in bankruptcy

Ohio residents who are experiencing financial hardships and fear losing their homes may be considering their options. One of those is filing for bankruptcy, and the intention of the federal Bankruptcy Code is to help people to rebuild their lives. But will that save their homes? The answer depends on several aspects related to the unique circumstances of the individual and also the laws of the state.

If a Chapter 7 bankruptcy is filed, a person's home may be safe if the equity in the property is lower than the state government's exemption amount for houses. However, if the equity exceeds the exemption amount, the home may be sold at auction to cover some of the unpaid debts. Ownership of cars may be saved by signing an agreement reaffirming the debt after bankruptcy. If this is not done, the car may be sold with the proceeds applied to existing debt.

By filing for Chapter 13 bankruptcy, the filer may continue paying a mortgage, car payment and other debt over a period of three to five years at reduced monthly installments. The court must approve the payment plan, and it will be monitored by a court-appointed trustee to whom payments must be made for distribution to creditors. While the specified payments are kept current, ownership of the house will be secure. In both bankruptcy chapters, unsecured debts such as credit card debt and medical debt may be discharged. In Chapter 7, the full amounts may be discharged; in Chapter 13 proceedings, the balance at the end of the repayment period is subject to discharge.

If an individual has filed for Chapter 7 bankruptcy and then realizes that his or her property may be seized, it may be possible to convert the filing to a Chapter 13 bankruptcy that may save the house. However, it may be a complicated process and a consultation with an experienced Ohio bankruptcy attorney may provide the necessary guidance. When pursuing a solution to save ownership of a house, following the appropriate legal procedures is vital.

Source: The Washington Post, "What happens to your house when you file for bankruptcy", Jonnelle Marte, July 26, 2016

No Comments

Leave a comment
Comment Information
Email Us For A Response

How Can We Help You?

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Contact us right now for a free bankruptcy consultation

NACBA - National Association of Consumer Bankruptcy Attorneys

Proud Member NACBA

We are proud members of the NACBA, a national organization dedicated to serving the rights of consumer debtors. Read More

Super Lawyers

Jenkins Named Super Lawyer!

Founding partner, Christian A. Jenkins, was selected by his peers and the media as a Super Lawyer. Read More

Hyde Park Office
2712 Observatory Avenue
Cincinnati, OH 45208

Phone: +1-513-723-1600
Cincinnati Law Office Map

Eastgate Office
792 Eastgate South Dr
Suite 150
Cincinnati, OH 45245

Phone: +1-513-723-1600
Cincinnati Law Office Map

Fairfield Office
447 Nilles Rd
Suite 9
Fairfield, OH 45014

Phone: +1-513-723-1600
Fairfield Law Office Map

Covington Office
526 Philadelphia St.
Suite 5
Covington, KY 41011

Phone: +1-513-723-1600
Map & Directions
Covington Law Office Map

Portsmouth Office
612 Chillicothe Street
Portsmouth, OH 45662

Phone: +1-740-300-2022
Map & Directions
Portsmouth Law Office Map