Bankruptcy and Foreclosure

Views:
 
Category: Education
     
 

Presentation Description

This presentation talks about bankruptcy and foreclosure in Ohio.

Comments

Presentation Transcript

PowerPoint Presentation:

Understanding The Basics Bankruptcy and Foreclosure

PowerPoint Presentation:

The American Dream Threatened Owning a home is still the American dream

PowerPoint Presentation:

Foreclosure can threaten that dream

In recent years there has been a significant increase in foreclosures because of the financial crisis faced by the nation:

In recent years there has been a significant increase in foreclosures because of the financial crisis faced by the nation

Bankruptcy may be a solution if you have been served with a notice of foreclosure; however, bankruptcy isn’t always the best solution:

Bankruptcy may be a solution if you have been served with a notice of foreclosure; however, bankruptcy isn’t always the best solution

Defaulting on Your Loan:

Defaulting on Your Loan

PowerPoint Presentation:

When you take out a mortgage loan your home secures the debt

PowerPoint Presentation:

If you default the lender can foreclose

PowerPoint Presentation:

Legally, a payment that is even a day late can qualify as default

PowerPoint Presentation:

Most lenders don’t proceed with foreclosure until a borrower has missed 3 or more payments

PowerPoint Presentation:

Ohio Foreclosure Process

PowerPoint Presentation:

Bankruptcy Halts Foreclosure Process

PowerPoint Presentation:

When a debtor files a petition for bankruptcy the court immediately orders an automatic stay

PowerPoint Presentation:

Chapter 7 Exemptions Chapter 7 bankruptcy is referred to as a “liquidation” because the debtor’s non-exempt assets are sold to repay creditors

PowerPoint Presentation:

Ohio’s exemptions, however, are very liberal

PowerPoint Presentation:

States may choose to let debtor’s use federal or state exemptions, or both Ohio lets debtor choose federal or state Ohio’s state homestead exemption is $132,900 Exemption only protects property from sale by trustee as part of bankruptcy –does not protect home from sale by foreclosure At termination of bankruptcy almost all debts are discharged, or forgiven Can relive debtor from other debts and free up money to catch up with mortgage

PowerPoint Presentation:

Chapter 13 Bankruptcy

PowerPoint Presentation:

Known as a “wage-earner” bankruptcy

Debtor must develop a plan to repay creditors over time:

Debtor must develop a plan to repay creditors over time

Even non-exempt assets can be saved in a Chapter 13 bankruptcy:

Even non-exempt assets can be saved in a Chapter 13 bankruptcy

PowerPoint Presentation:

Resolving the Debt

PowerPoint Presentation:

Whether a debtor files a chapter 7 or chapter 13 bankruptcy, the debt owed to the lender must ultimately be resolved to permanently halt the foreclosure

PowerPoint Presentation:

Second Mortgage Bankruptcy may also be able to relieve a debtor of a second mortgage

PowerPoint Presentation:

Deficiency Judgments

PowerPoint Presentation:

Many borrowers do not realize they could still owe money after a foreclosure and subsequent sheriff’s sale

If the home sells for less than what you owe, you could end up with a deficiency judgment for the difference between what you owed and what the home sells for at the sheriff’s sale:

If the home sells for less than what you owe, you could end up with a deficiency judgment for the difference between what you owed and what the home sells for at the sheriff’s sale

The deficiency judgment could be discharged in bankruptcy:

The deficiency judgment could be discharged in bankruptcy

PowerPoint Presentation:

Want to Know More about Bankruptcy and Foreclosure In Ohio?

PowerPoint Presentation:

Click to visit: thecolumbusbankruptcylawyer.com

PowerPoint Presentation:

Content provided by Best Legal Practices

authorStream Live Help