Filing for bankruptcy has become the new way for Americans to seek relief from their debts.
But the process is fraught with pitfalls and the foreclosure industry has a history of defrauding victims.
Here are some of the biggest problems faced by victims and their lawyers:The foreclosure process is rife with fraud, according to a report released by the National Consumer Law Center (NCLC) in June.
In fact, according a 2015 analysis by the University of Texas Law School’s Center for Financial Services Law, the number of foreclosures that are fraudulent on a nationwide basis has nearly tripled over the last decade.
That trend was particularly evident in 2008, when nearly a third of foreclosed properties were in the process of being foreclosed on.
In the year after the financial crisis, nearly half of all foreclosed homes were foreclosed, according the NCLC.
Even more troubling, many of these homes are not fully insured.
As a result, banks often foreclose on homeowners who have been unable to repay their debts because they did not have adequate insurance coverage.
And that’s not all.
Foreclosure can also lead to a whole slew of problems.
When homeowners fail to make their monthly payments, they risk losing their home.
In some cases, homeowners may also be evicted from their homes, which can result in foreclosure.
And, as the NCC found in its report, in some states, foreclosure victims are barred from getting a loan modification, which allows them to refinance their homes at lower rates.
What is bankruptcy?
Bankruptcies are when a debtor fails to make a regular payment on their debts and instead seeks to file for bankruptcy.
In a bankruptcy, the debts owed can be wiped out of the debtor’s income and the creditors can get relief.
As with any bankruptcy, a debtor will have to file a claim for relief.
But in a bankruptcy lawsuit, the debtor may not be able to use the same legal team or represent themselves in court.
In many states, the amount of money a debtor must make up front for the creditors to be eligible for relief is based on the amount owed.
In states where the debtor is in default, their debts are usually forgiven.
However, in many other states, a debt cannot be forgiven unless the debtor has made a monthly payment of more than $50,000.
In the U.S., the amount a debtor has to pay is determined based on whether they are in default.
In other words, if a debtor owes more than the minimum owed, then they are considered in default and are eligible for a bankruptcy.
But in many states that are not in default with a debtor, the minimum amount a person has to make up for the debts that they owe is much lower.
For example, in California, for example, a person can be considered in “default” with no outstanding debts.
In Nevada, a court can consider a person in “deficiency” to determine if the debtor owes any debts.
For more information on the foreclosure process, see:What are the biggest misconceptions about bankruptcy?