Consider Non Bankruptcy Alternatives For Debts

24 Aug Consider Non Bankruptcy Alternatives For Debts

If you are considering bankruptcy, mortgage modification, debt relief, debt settlement, debt management (credit counseling) or debt consolidation, you should look at all of them to be sure you are making the right decision for you and that you have all the facts. Mortgage modifications are causing all sorts of problems, as people fall further and further behind while no real relief is reached.

If you are in financial trouble there are many different options to consider but many people miss the opportunity because they don’t have all the facts or they try the wrong solution first.

If you were buying a house or a car, you would compare several different models before you buy. You wouldn’t buy the first one that you saw advertised, would you? No!

This is a big decision and one that could cause you harm if you made the wrong decision to begin with. It is the same with financial problems. Making the wrong decision can potentiallycost you time, money, assets and stress.

Filing for bankruptcy should not be the first thing you tryand it isn’t the right option for everyone, but consulting an attorney doesn’t mean you willfile. When a client comes in for a consultation with me, I go over any optionsthat I feel could helpthem, including alternatives for dealing with debts.

  • Seeing a lawyer means that you can get the facts about all your legal options since only a lawyer can discuss legal options and any good attorney will also answer your questions about your alternatives or avoiding bankruptcy.

I have said this before in other articles, but it bears repeating:

Considering bankruptcy should not be the last resort, with the important word being “considering”

People wait way to long beforethey actually speak to a lawyer for the first time.

I have met with many clients whothought that they are working with a lawyer, or with a company where an attorney was overseeing their case.

In reality no attorney was involvedand in many cases,the actions taken by the company made the situation worse since clients were calling me after learning that lawsuits had been filed against them, or even well afterjudgments had already been taken.

When you see a company for mortgage modification, debt settlement, credit counseling or consolidation,they normally justdiscuss how their particularprogram works for you.

Even if the company has the words likelaw, legal, legal group or suchin their name, unless the company has an attorney licensed in your state, theyare not allowed todiscuss your legal options with you. I have seen disclaimers and contracts which state that no attorneys are involved, but nonetheless, clients are lead to believe that they are being looked after … until they find out that the law suit is filed, judgment entered, or a foreclosure is looming.

Some of the worst scenarios I see are where someone has paid thousands of dollars into a repayment program that was doomed to fail because there just wasn’t enough money to cover everything, and the people still have to declare bankruptcy.

I also hate to see that a homeowner works with their mortgage company for months trying to get a mortgage modification but it goes on so long that they get so far behind they can’t be helped, or they find out on the eve of foreclosure (or after it occurred) that the modification isn’t going to happen and they are scrambling to find a lawyer to help them.

The bottom line is that going to speak to an attorney doesn’t rule out the alternatives, and any good lawyer should speak to you about different options and answer your questions. But you might not get the same treatment from companies who offer only offer ‘alternatives’.

See also:

Debt Settlement Companies Come Under Increasing Scrutiny from Regulators by Jonathan Ginsberg, Atlanta Bankruptcy Attorney

Considering Debt Settlement? Perhaps Bankruptcy Is Cheaper And More Efficient by Adrian Lapas, Eastern North Carolina Bankruptcy Attorney

No Modification For You ! by Carmen Dellutri, Southwest Florida Bankruptcy Attorney

Does Working On A Mortgage Modification Stop Foreclosure? by Susanne Robicsek, North Carolina Bankruptcy Attorney

Can Bankruptcy Help Save Your Home From Foreclosure? by Susanne Robicsek, North Carolina Bankruptcy Attorney

Are “Debt Management” Programs a Scam? by Brett Weiss, Maryland Bankruptcy Attorney

Many People Keep Their Homes When They File For Bankruptcy by Susanne Robicsek, Charlotte NC Bankruptcy Lawyer

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Concentrating in Consumer Bankruptcy Law since 1988; Wake Forest Law School JD 1987 Law Office of Susanne M. Robicsek since 1993, Law Clerk to Judge Rufus Reynolds, US Bankruptcy Judge for Middle District of NC; Burns Price & Arneke, PA, David Badger and Associates, PA.

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