Experiencing severe financial challenges can be one of the most stressful times in your family's life. Not only is your security and peace of mind at stake, but you may also face the very real risk of losing your most significant investment: your home. Even though the situation can seem quite bleak when you are in the middle of it, there are actually a range of legal solutions that can help to stop foreclosure and get you back on solid financial footing.
For people in Long Island and throughout New York, there's no way to be prepared for the curveballs that life often throws. Whether it's unemployment, an unexpected medical issue or simply making mistakes with one's finances, there are many ways in which financial challenges can arise. Chapter 13 bankruptcy is a useful tool to get back on better financial footing while simultaneously saving one's home from being foreclosed upon.
When homeowners struggle with serious financial challenges and find themselves at risk of losing their homes, they often search for any way possible to stop foreclosure. Unfortunately, the desperation and helplessness experienced by many homeowners facing foreclosure make them targets for mortgage fraud or foreclosure fraud. The incidents of mortgage and foreclosure fraud have increased in recent years, often taking the form of short sale scams or foreclosure rescue and loan modification scams.
Severe financial challenges can easily send the most thoughtful and intelligent people into a cloud of confusion. When struggling under the weight of snowballing interest, missed payments, creditor harassment and insufficient income to meet debt obligations, it is very hard to see the light at the end of the tunnel--or to develop a strategy about how to get there. For many people, the focus becomes immediate: how to survive, how to stop repossession, how to stop foreclosure.
When New York consumers are struggling under crushing amounts of debt, it can feel as if there is no way out. Dealing with the harassment of bill collectors or problems related to wage garnishments can make the situation even worse for those already worried about how to make ends meet. Many consumers and families would benefit from a greater understanding of personal bankruptcy, a very valuable debt relief tool which can stop foreclosure or result in more manageable payments.
Financial challenges are always tough for New York families. Worrying about which bills to pay, dealing with the harassment of debt collectors and creditors, and trying to find ways to improve their financial outlook can all take a serious toll of families' sense of security and peace of mind. The risk of foreclosure generally ratchets the stress and pressure up considerably, however, because people fear losing their home, which is often their greatest investment.
If you're in financial trouble but still have a regular income, then you may not qualify to have all of your unsecured debts -- for example, medical bills, past-due utility bills, credit card debt, etc. -- discharged through Chapter 7 bankruptcy. People who qualify for Chapter 7 protection must pass a means test showing that there isn't enough income to establish a repayment plan.