In the wake of the devastation wrought by powerful tornadoes in Kentucky, those in disaster-affected are sometimes left clamoring for Louisville debt relief.
Our Louisville bankruptcy attorneys understand that even though you have endured a natural disaster, lenders aren't always understanding. This is especially true if you were already struggling with debt prior to the disaster.
For example, in many instances, you'll be expected to continue making mortgage payments, unless you are able to work out other arrangements. Surprisingly, this is the case even if your home has been leveled. You will also still have to make payments on cars, credit cards and school loans - that doesn't all just stop, even though it may seem like your world is standing still.
The good news is that the Federal Housing Administration (FHA) typically implements a moratorium of three months - or 90 days - on foreclosures following a natural disaster. That means that the process must cease during this period, to give you a chance to regain your bearings and get organized.
Another potentially positive development happened last year, following an earlier bout of havoc-wreaking tornadoes that ripped through the Midwest. That's when Freddie Mac sent out a press release that urged lenders to help people in disaster zones by doing the following:
1. Suspend any foreclosure or eviction process for up to a year;
2. Waive any penalties or late fees against those whose home has been destroyed in a disaster;
3. Choose not to report any delinquencies to the national credit bureau if the lateness is due to a disaster.
Still, these are only guideline; there is no law that compels a bank to act on these recommendations.
That is why consulting a Louisville bankruptcy and debt relief attorney may be your best option when it comes to getting your financial affairs back in order. Bankruptcy sometimes has a negative connotation, the belief being that you have somehow failed. The truth, however, is that bankruptcy can mean a fresh start. And debt relief is going to help you keep those creditors at bay. This is especially important when you have bigger things to worry about - like rebuilding your life.
Certainly, it's important to prepare for a disaster before it happens. This means having all relevant documents in a secure and easily accessible location. This means making certain you have the appropriate insurance - such as flood or wind. It also means making sure you have a sufficient amount of savings so that when disaster strikes, you are not left completely destitute.
However, may Americans right simply can't afford all that. The economy continues to strggle, and times for many are hard. In that case, here are some steps you will want to take following a disaster:
1. First locate all of your important paperwork - wills, tax returns, deeds, insurance policies and bank statements.
2. Fill out insurance claims as soon as you are able.
3. Reach out to the bank that holds your mortgage loan. Make detailed notes during the conversation. If they ask for any documents, make sure you follow up with them.
4. Get in touch with the credit reporting agencies and let them know that your home has been affected by he disaster.
5. Call a Louisville debt relief attorney to discuss all of your options. Not only can we help you sort through the wreckage, we can offer peace of mind that you are doing everything possible to help rebuild from the ground up.
For help with debt relief in Louisville and a free consultation, contact Schwartz Bankruptcy Law Center today. Call 1-866-270-4495 or contact us through this website.
Pay mortgage if house is destroyed?, Staff Report, MSN Money