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Ellen
Ellen, Attorney
Category: Bankruptcy Law
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Experience:  Bankruptcy Lawyer. Experienced.
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My wife and I live in Ohio and recently went through a foreclosure.

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My wife and I live in Ohio and recently went through a foreclosure. We had a second mortgage on the property so we are dealing with two lenders. Now, after the sheriff sale the second lender is trying to collect on the debt. I thought that a summary judgment and sheriff sale was the end of the process, I think I am learning that I am wrong.
We tried to settle with the second lender early in the process, to make it easier to do a deed in lieu of foreclosure, but they decided to be on the suite through the courts. Our house was sold at sheriff sale and we did a cash for keys type of program and turned everything over in good order. Now what do I do about the collection agency? We have kept all of our other debts current, just had to let the house go, and now I am worried that we will still have to file bankruptcy. What should my next step be?
Submitted: 6 years ago.
Category: Bankruptcy Law
Expert:  Ellen replied 6 years ago.
Hello,

So sorry to hear of your dilemna. I will strive to provide you with legal information to assist you.

I am a lawyer with 25 years experience. Although I am not your attorney, I hope that I can give you helpful legal information on this open and nonconfidential forum.

If you are unable to negotiate a settlement with the 2nd mortgage holder, you may want to consider a chapter 7 bankruptcy. I will explain.

As an individual, there are two types of bankruptcy available. A Chapter 7 and a Chapter 13. There are distinct differences in between a Chapter 7 and a Chapter 13 bankruptcy.

A Chapter 7 bankruptcy could discharge (erase) all of your unsecured debt such as credit cards, judgments and personal loans. It would be an opportunity for a fresh financial start. However, you may have to surrender assets, if any, that exceed your exemption.

A Chapter 13 bankruptcy is a repayment plan for an individual. It may require that you repay some of your unsecured credit card debt over a 3 -5 year period. However, you may retain assets that exceed your exemption.

Here are the exemptions for Ohio:
http://www.bankruptcyaction.com/ohexemptions.htm

Best wishes for a successful outcome. If you have additional questions, please do not hesitate to submit them to me directly.



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