When a person in Oregon attempts to take out a loan from bank, they may be asked to list an asset as collateral to guarantee that the bank gets their money back. If the loan is not paid on time, the bank may take that asset from the person or garnish the wages of the borrower. The borrower may end up losing their possessions as a result of a debt that is not paid on time, no matter how important or valuable the possession is.
When a charter school was looking for a new home, an Oregon man obtained a loan from his bank to help fund the project, hoping to make a profit off the deal. When renovations ended up requiring more of an investment than originally planned, and the market crashed, the man stood to lose over half a million dollars by the time the school purchased the building from him.
Family land that had been in his family for generations was listed as collateral on the loan, and is likely to be repossessed due to his inability to make the payments. Fundraising efforts have started to turn the land into a wildlife sanctuary to keep the land from going to the bank, although donations have been rare.
Although the loss of possessions can be devastating, bankruptcy is offered as a helpful option to any consumer who is hoping to remove the crushing weight of overwhelming debt. A bankruptcy attorney can help to steer the process in order for the consumer to achieve the best outcome, and may be able to help the person keep belongings that are high in both monetary and sentimental value.
Source: The Oregonian, “Forest Grove man to lose family farm after defaulting on loan for charter school,” Deborah Bloom, May 7, 2013