Chapter 13 and selling your home

[EmmaH]

Hello -

Does anyone know exactly how much Ohio's homestead exemption is? I am included in a chapter 13 plan at the moment and am also getting ready to finalize my divorce next week. Selling my home is part of the divorce. My divorce attorney says I can keep whatever is left up to my homestead exemption AFTER the mortgages and chapter 13 is paid in full. My bankruptcy attorney says I get NOTHING and that my husband the chapter 13 trustee will split any proceeds from the sale. Can anyone confirm which is true?

Thanks for your input.

[helpless]

The exemption in Ohio is $5000. I am almost positive that it is $5000 for you and your soon to be ex. Good Luck.

[JollyGG]

I have no way of knowing for sure but I would assume your half of the proceedes would be distributed as followes:

1. Pay of mortage
2. To you - up to the exemption amount
3. Paid into chapter 13 plan.

But I really don't know.

Is the chapter 13 just yours or is it joint between you and your ex?
How many months into it are you? How many months is your plan set for?
Are you old law (filed pre October 2005 or post October 2005)?
What percent payback is your plan set at?
With that information I'm sure some of the more knoledgable members of this forum can help you.

[EmmaH]

Thanks for the replies. No, it's just in my name alone. He is a deadbeat, that's why. My plan is set for 5 years, filed in October 2004. I'm in my 2nd year of the plan (3 years this October). I pay both my first and second mortgages through the plan. The unsecured debts are at 10%.

[JollyGG]

I did a Chapter 7 so I am by no means an expert on Chapter 13 issues. So I hope someone more knowlegable will chime. What I would assume would happen is.

1. House would get sold
2. Mortage would get paid
3. Equity would be split between you and ex
4. Ex walks away with his half.
5. You get the amount of your exemption for the house to keep. Not sure if that would be 1/2 the exemption amount or all of the allowed exemption.
6. The rest goes to your trustee
7. If the house sells before October any extra would go to increasing the percent to each creditor. If you can pay everyone 100% your Chapter 13 is completed and you keep anything over that amount if there is any. If you sell after October you pay only the already agreed on percentage and you keep anything left over if there is any.

But I am just proposing what I would think would be logical and well, that doesn't mean I'm right.

[EmmaH]

UPDATE: My house has still not sold and I've drastically reduced the price in the hopes of selling it quicker. This means I will have very little profit from the sale, perhaps just enough to cover both mortgages and the realtor's commission. Anyway, by my calculations that would leave right around $3K owed in my chapter 13 plan - assuming I can still pay my unsecured creditors back at 10%. I am very near the 3 year mark. Can anyone advise me what will happen after the sale is complete? Currently I'm paying $422 per pay check, which is quite a chunk (I get paid every other week). My mortgages (both) and car are paid through the plan as well. Can my plan payments be reduced since the balance will be so low? I am living with my boyfriend and would like to be able to contribute more of my income to our household.

Thanks for your input.