Filing for bankruptcy is a position that no one wants to be in. You may be flooded with shame, guilt, or panic, wondering how you could find yourself in this situation and how you can get yourself out of it. Bankruptcy is not as uncommon as one may think, and it is not impossible to recover from. Whether you are filing for Chapter 7 or Chapter 13 bankruptcy, the financial process will leave a stain on your credit, but a qualified attorney can help you repair these damages so that you can build a stable financial position for the near future.

Repairing Your Credit

Your credit score can be a determining factor in your financial freedom, and after filing for bankruptcy, it can take some time to regain your stability. Whether you are looking for approval to make a large purchase or need a reputable score to find a new place to live, you should do the following to repair your credit over time:

Unfortunately, foreclosure may be your only option depending on your financial situation. This is especially true in times like these where unemployment is all too common. In 2019, New York City had approximately 3,000 first-time foreclosure cases and this number is likely to rise this year with COVID-19’s effect on employment and income. Many falsely believe that foreclosure is an instantaneous process once you miss a mortgage payment. Luckily, there is a mandatory 120-day waiting period for lenders or loan servicers to follow before they are able to file for foreclosure. Most lenders will then be required to provide you with notice that your loan is in default or unpaid, and that the amount will be accelerated if payment is not made. During this 120-day period, if you are threatened with foreclosure, you will receive a 90-day notice before the foreclosure officially begins. Once the foreclosure is filed, the process will start, so it is important to consult with an experienced real estate attorney to make sure your rights are protected.

The Foreclosure Process Explained

Foreclosure cases involve a lot of back-and-forth between you, your lender, and the court. First, a complaint will be filed against you requesting that your home be foreclosed. You are granted 20-30 days to respond and provide a defense for the late payments or lack thereof. The lender’s attorney must file a certificate of merit, which states that they have reviewed the mortgage agreement, promissory note, and any extensions/modifications of the mortgage. They will also file an affidavit of service. The court is then required to hold a settlement conference with both the lender and you as the homeowner in hopes that everyone can come to an agreement on the matter. In some cases, this works, but in many cases, you may still be unable to pay the lender.

If things are not resolved in the settlement conference, both the lender and you as the homeowner can do further digging on each other through official records and reports. Most lenders will then file a motion for summary judgment. This allows them to win the case without incurring trial fees. Your legal teams and the court-appointed attorney will work to determine how much you owe the lender. If the case does go to trial, the court will decide this with the evidence that they are provided. Once the amount owed is determined and the lender confirms the amount, an auction will be held. As the homeowner, you are still able to reinstate the loan by paying off your debts before the judgment of foreclosure and sale is made. However, if you are unable to do so, the foreclosure sale date will be selected and advertised to the public. On the date of the sale, whoever puts in the highest bid takes over ownership of the property.

There may come a time in your life when you need to take over caring for one or both of your parents. It can be difficult and emotional to switch roles with the individual who took care of you your whole life, but unfortunately, it may be necessary to ensure that your parent receives the care he or she needs in his or her elder years. However, it can be a challenge to know the appropriate time to do this. You may not recognize your parent’s incapacity to care for himself or herself, or you may be putting off the decision because it is awkward and uncomfortable. Parents who need a guardian may not be on board with the process—seeing their child take care of them can be a difficult pill to swallow. Whether or not there is tension surrounding the decision to become your parent’s legal guardian, it is important to have a firm understanding of estate planning and what the role of guardian entails.

What Are the Responsibilities of a Guardian?

There are a number of different responsibilities that can be delegated to you as a legal guardian, either temporarily or permanently. A guardian is defined as a person, agency, or institution that is designated by the court to manage the affairs of another. There are different types of guardians, each of which has specific duties. Guardianships of the person are set in place for those individuals who need assistance with their physical care. These guardians will be in charge of decisions regarding comfort, medical care, education, and health.