There are multiple options available to the individual so that he does not lose everything he has labored for over the years. Whenever there is a possibility of falling behind on a mortgage, for example, the borrower should immediately notify the lender. If they are aware in advance, they can often restructure his payments to help him through the difficult period.
Things begin to go awry only when the mortgagee fails to notify anyone of his predicament. When the agreed-upon amount is not paid, no lender will listen. In fact, some lenders foreclose out of contempt, as they frequently incur financial losses as a result. However, if they perceive that an endeavor is being made, they will be somewhat sympathetic.
Some lenders will permit interest-only payments for a period of time until the borrower can find an alternative source of income. This gives him the space to keep his family safe while he focuses on finding a job, for example, and allows him to continue living in the house while he looks for employment.
Once the case reaches court, the debtor may also request assistance. If the majority of debts are credit card debts, the courts have implemented new rules to sort out this problem. They will insist on conducting an analysis of the debtor's incoming expenses and will only permit essential payments. Things such as sustenance costs and mortgage payments. If the income is less than the incoming expenses, it is certain that the credit card debt can be eliminated entirely.
Alternatively, if the expenses are less than the income, that is, if there is a surplus of some sort, then the debt is restructured into simpler payments and no longer incurs credit charges.
The positive aspect of this is that the debtor will no longer be harassed and there will be no more penalty charges to contend with. This action may affect their credit ratings in the future, but it's a minor price to pay to save everything they've worked for.""
" - https://www.affordablecebu.com/
