Many in the state of New Jersey are falling into financial hardship and facing the threat of foreclosure. This could be due to a multitude of factors that are relative to each individual situation, but no person ever wants to lose the home that they worked so hard to obtain. There are a few ways that you can avoid foreclosure if you have fallen behind on your mortgage payments.
Even though the nationwide numbers of zombie foreclosures have dropped 43 percent this past year, the number of such foreclosures in New Jersey have increased more than 28 percent at the same time. Unfortunately, Hurricane Sandy can be attributed to the loss of many of these homes and their eventual foreclosure. If you are in New Jersey and have been struggling with mortgage payments, you may be wondering what zombie foreclosures are and how you can avoid them.
It used to be that using Chapter 7 bankruptcy was easy to do, because bankruptcy law allowed bankruptcy courts in large measure of discretion when determining whether a petitioner was eligible for liquidation bankruptcy. Beginning in 2005, however, changes to the US Bankruptcy Code have made it more challenging to select Chapter 7 through the imposition of what has become known as the "means test."
We recently posted a blog about how the future might hold promise for a relaxation of the rules that essentially prohibit the discharge of student loan debt in a consumer bankruptcy. Consumers who doubt the determination of the federal government to recover the $94 billion borrowers owe to it in the form of delinquent student loans payments need only wait for their cellphones to start ringing.