Bankruptcy is meant to give someone a new beginning, a fresh start. By filing for liquidation under Chapter 7 or establishing a repayment plan under Chapter 13, a person who is mired in debt can put the financial crisis behind him and move on -- there is life after bankruptcy.
Now that Halloween is just a week or so away, we thought it appropriate that we raise the subject of our Oct. 4 post -- zombie foreclosures -- from the not-quite-dead. That post, "Fannie, Freddie offer mercy to zombie foreclosure victims," addressed yet another questionable practice of lenders.
Debt typically doesn't just appear overnight; it accumulates over time. However, all it takes is one unexpected or significant expense to tip that debt level from difficult to unmanageable.
No one wants to be financially strained or in debt. However, millions of Americans are facing these very issues every single day. A difficult housing market, a struggling economy and the high costs of schooling and medical care are all creating significant financial obstacles that make it extraordinarily difficult for people to keep their heads above water.
Yes, Virginia, there is such a thing as a zombie foreclosure.