Helping With Your Financial Future

Financial abuse may lead to bankruptcy

On Behalf of | Sep 19, 2022 | Consumer Bankruptcy

Financial abuse can be a serious problem for older people. In many cases, financial abuse is coupled with other forms of abuse or neglect. Ultimately, Minnesota victims may be drained of their life savings or pressured to sell their assets to raise funds for the perpetrators of fraudulent schemes.

Signs of abuse may be hard to spot

Victims of financial fraud may fail to spot potential clues that they are being taken advantage of. This is because they believe that they are in love with the individuals who are scamming them. It’s not uncommon for victims to believe that they are simply helping a partner pay off debts or take care of other temporary financial issues. Of course, in most cases, a scammer won’t stop until he or she has taken everything of value from a victim.

The damage can be widespread

A victim of financial abuse may have no choice but to file for bankruptcy. It’s also possible that assets such as a house or car may be foreclosed up on or repossessed before that happens. This may result in an individual being forced to seek housing or financial support from family members or friends. Those individuals may then be forced to dip into their savings or take other steps to actually provide that support.

Restitution may not be available

While victims of financial crimes may seek restitution, it may be difficult to obtain. This is because scammers often spend the money that they steal in a short period of time. It’s also possible that assets purchased with stolen funds are difficult to liquidate in a timely manner or don’t sell for anywhere near what a victim is owed.

If you are having financial issues for any reason, bankruptcy may serve as a form of relief. It may be possible to obtain an automatic stay, which would temporarily stop a foreclosure, a repossession or other collection activities. It may also allow you to reorganize debts or have certain balances forgiven.