What is being done to prevent zombie homes in Ohio?

The foreclosure crisis that has gripped Ohio since the collapse of the housing market in 2008 has littered the state with vacant and abandoned residential properties often referred to as zombie homes. Now, a fast-track foreclosure process has been put in place with the signing of HB 390 (Sales tax-exempt sale of natural gas by municipal gas company). This measure is aimed at expediting the foreclosure process and mitigating problems associated with vacant properties.

The law is the culmination of a three-year effort by Ohio lawmakers and community groups that have been working to update the states foreclosure laws. Ohio has long been a judicial foreclosure state which means that the lender must file a lawsuit to initiate the foreclosure, and the process can take several months or longer.

What are the primary reasons individuals file for bankruptcy?

Bankruptcy is becoming increasingly common. United States bankruptcy court statistics show that more than 1.5 million people file for bankruptcy ever year and nearly 97 percent of bankruptcy filings are made by individuals, not businesses. There are many reasons individuals give for filing for bankruptcy -- some of them unavoidable, some of them self-inflicted.

As you read through them, you'll recognize that some of the reasons are tied to economic trends.
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In order for a creditor to have a valid interest in a bankruptcy case, they must file a claim with the Bankruptcy Court. The filing of a claim is subject to strict time limitations. Although the Bankruptcy Court may allow for the late filing of a claim under certain circumstances this does not mean that they must do so in every case. A case coming out of the Sixth Circuit is a good example of this.

Debtors filed for Chapter 13 bankruptcy in 2014 seeking to reorganize their debt and make payments according to an approved plan.

Is student debt a problem for baby boomers?

Although we think of student debt as affecting new graduates and young adults, research shows that a surprising number of baby boomers are still carrying the weight of debt from their educations. According to the Federal Reserve Bank of New York, the number of borrowers 60 years of age and older was up from 700,000 people in 2005 to 2.2 million in 2014.

Furthermore, the Read more . . .

What are the differences between Chapter 128 and bankruptcy?

Chapter 128 is an old, but still relatively unknown, alternative to bankruptcy available to the people of Wisconsin. It is a voluntary debt consolidation plan that works through the Wisconsin Circuit Court system and has elements that distinguish it from both consumer credit counseling plans and bankruptcy.

Differences between Chapter 128 and Bankruptcy

There are two major distinctions between Chapter 128 and bankruptcy. The first is that bankruptcy is federal and Chapter 128 is strictly limited to the State of Wisconsin. The second is that Chapter 128 enables you to pay your debts through consolidation, not erase them through bankruptcy

Did the Federal Government's overhaul of bankruptcy laws affect Chapter 128 proceedings?

No.

Should a married couple file for bankruptcy together?

For some people, being married means doing everything together. Making a home, having children, filing taxes and discussing every minute detail in between might be the best way to go for these folks. Luckily, most people are much more realistic and understand that being married does not cause one to lose his or her personal autonomy. This should be kept in mind during good times and in bad. One of those bad times can be when filing for personal bankruptcy becomes necessary.
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 Why are so many U.S. bankruptcies traceable to high medical expenses?

Although even more extravagant claims have been made, it is estimated that U.S. indebtedness as many as three out of five bankruptcies in this country are attributable to medical calamities.

What will it actually cost me to file for bankruptcy?

If you are considering filing for bankruptcy you are likely overwhelmed with debt. So much so that the thought of one more bill is enough to put you over the edge. So, when someone tells you about the fees associated with bankruptcy is causes you to pause. The bad news is yes; it does cost money to file for bankruptcy. The good news is it bankruptcy is a relatively cheap option in comparison to the amount you owe creditors.

How is it possible for people to blow through millions, or even billions of dollars?

It is counterintuitive that people who win the lottery or inherit tremendous amounts of money will end up bankrupt and yet, according to research studies, that is precisely what frequently occurs. When people win the lottery, their lives are changed forever, and often not for the better. Once the initial exhilaration wears off, typically within a few months, a new reality sets in and it is one that can be difficult to adjust to and manage.

Although the odds of winning the lottery are, as we're all well aware, extremely slim (something around 1 in 292 million), there are lessons to be learned from those who handle sudden wealth badly and suffer the consequences.  Some problems associated with acquiring sudden wealth, whether through winning the lottery or by other means, may be unpreparedness and susceptibility.
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When it comes to debt relief, there are good guys and bad guys. Unfortunately, the number of scammers entrenched in the debt relief industry is growing, and well-meaning Americans are facing disastrous consequences for working with so-called “credit counselors” and “consolidation specialists” -- all of whom are out to make a quick buck.

As practitioners of bankruptcy law, we know the options available to consumers -- and we are here to help. However, as one recent case points out, many debtors -- unaware of their choices -- turn to unscrupulous con artists for help with their fledgling financial situation, only to end up worse off than when they started.

Earlier this month, the federal Consumer Financial Protection Bureau (CFPB) reigned victorious over one such “debt relief” company, referred to in pleadings as “Morgan Drexen.” And, the verdict is hardly one to scoff at: $173 million.

According to the details of the lawsuit, Morgan Drexen offered clients “bankruptcy” services -- promising to help debtors avoid bankruptcy, or to minimize their exposure once the process began. However, Morgan Drexen performed “little to no” work on the clients’ files, and is even alleged to have falsified bankruptcy pleadings on clients’ behalf.

In essence, struggling debtors relied on the services of this “debt relief” company, and were ultimately taken advantage of in the process. If you are facing a difficult financial situation, the best resource is an experienced bankruptcy attorney that can offer realistic advice and reasonable solutions. As always, if it sounds too good to be true, it probably is.

For anyone defrauded by Morgan Drexen, the CFPB promises to forward letters to all former clients explaining their options moving forward. The letters will contain information as to whether certain debts have been repaid (or not) and what debtors need to do to rectify the situation.

What is being done about the wave of mortgage foreclosures in Ohio? 

The U.S. Department of Treasury recently announced that Ohio will be provided with another $96.6 million under the "Hardest Hit Fund," a federal program designed to help states recover from the foreclosure debacle stemming from the Great Recession. The state is eligible for an additional $250 million in taxpayer funds to bulldoze houses and fight housing blight.  

What is a mortgage foreclosure? 

A foreclosure occurs when a homeowner fails to make full principal and interest payments on a mortgage. A borrower who misses a payment and does not pay it within one month is in "default." After the lender notifies the borrower that the payment must be made in full, and the mortgage remains delinquent after 3 to 6 months, the lender can initiate a foreclosure proceeding. At that point, the lender can evict the homeowner, seize the property and sell it at a public auction. 

The Housing Blight in Ohio 

The additional funds from the Hardest Hit Fund will enable Ohio and other states to clean up the mess from the housing market collapse by demolishing abandoned homes in depressed towns across the state, including 158 vacant apartment buildings in East Cleveland. Ohio previously received $570 million for not only blight removal, but also foreclosure prevention programs. 

The money is used by the state, cities and nonprofit groups in Ohio to counsel or provide financial relief to homeowners who are facing foreclosure, and to tear down abandoned homes. The vacant property is then turned into green space or sold for new development. As homeowners defaulted on their mortgages and walked away from their homes, banks and other lenders were unable to sell many properties in foreclosure auctions. Lawmakers believe the additional funding will help Ohioans recover from the lingering devastation of the financial crisis. 

The White House has employed a number of tools to help Americans who were swept up in the recession and the housing downturn and views the Hardest Hit Fund as a program that will strengthen the housing recovery. Whether there has been a recovery in the housing market so far is arguable, but abandoned and blighted homes certainly have a ripple effect on the values of other homes in the neighborhood. 

Can I save my home by filing for bankruptcy? 

A Chapter 13 Bankruptcy petition may enable you to set up a plan to pay the mortgage payments that are in arrears. The homeowner and lender can agree to a time period for the repayments to be made, but the delinquent payments must be made simultaneously with the current payments. Provided that all of the required payments are made according to the repayment plan, you can avoid foreclosure. If you are having trouble making your mortgage payments, you should consult with a bankruptcy attorney to explore your options.