Children of Homeowners May Suffer Most in Tennessee Foreclosures
As many as 8 million children in the U.S. may be directly affected by foreclosure, according to startling new data reported in USA Today.
Since the foreclosure fiasco began in 2007, an estimated 2.3 million kids have lost their homes to a bank. An additional 3 million children face the same fate because their parents are either already in the foreclosure process or are at risk of foreclosure due to missed payments.
As our Tennessee Bankruptcy Lawyers Blog reported earlier this month, a new flood of foreclosures is expected to wash over the market later this year.
While moving is never easy on kids, foreclosure in particular can have devastating effects because it impacts kids physically, mentally, and emotionally.
As data by the advocacy group First Focus illustrates, children who change schools as a result of a move can see their reading and math scores fall by as much as if they had missed a full month of classes. Kids who move frequently are also 50 percent more likely to drop out of school before graduating.
Because foreclosure is typically the result of serious financial distress, many children of families facing foreclosure suffer health problems since parents are often without health insurance.
Foreclosure frequently leads to depression, anxiety, and relationship trouble in parents, which in turn impacts children.
Children do best in stable environment where they have a sense of security. Losing the roof over their head - and seeing their parents stressed out from the process - challenges all that.
These days, it's impossible to guarantee a stable financial environment. But parents who can manage to hold onto their home might be better able to help insulate their children from economic problems. Filing for Tennessee bankruptcy may make it possible.
Chapter 13 bankruptcy protection has the power to halt foreclosure proceedings and debt collection, giving families time to reorganize debts into a realistic repayment plan. Debt remaining at the end of a 3-5 year repayment period can often be discharged completely.
If foreclosure or other financial issues are threatening the health and happiness of your family, a Tennessee bankruptcy lawyer can help determine if filing can offer much-needed relief.
To speak with one of our knowledgeable Tennessee bankruptcy attorneys, call the DebtStoppers Bankruptcy Law Firm at 800-440-7235. Contact us today for your complimentary debt analysis.
More Blog Entries:
Tennessee Bankruptcy Protects Underwater Homeowners from Expected Flood of Foreclosures: April 18, 2012
Parents Who Co-Sign for Kids May Be Stuck with Credit Damage, Tennessee Bankruptcy: April 7, 2012
Additional Resources:
Report Estimates 8 Million Children Hurt by Foreclosures, by Julie Schmit, USA Today
Foreclosures' Financial Strains Take Toll on Kids, by Stephanie Armour, USA Today