Alternatives to Bankruptcy

If you are considering a personal or business bankruptcy, you may be uncertain of your rights, in light of the recent overhaul of the federal bankruptcy law. The law has made the process more complicated, but bankruptcy continues to be a good option for many people. An experienced bankruptcy lawyer can help you through the process, so that you use the law as designed — to help you get a fresh financial start.

However, if bankruptcy is something you wish to avoid, there are alternatives that are available. For example, if you have a home worth less than what you owe, there are several solutions available for you. We can negotiate a deed in lieu, a short sale or a loan modification.

A deed in lieu is where you actually transfer your property to the bank in exchange for a forgiveness of the loan amount. This saves the bank the fees involved in foreclosing on your home and gets you free from a bad debt.

In a short sale, we negotiate with the mortgage holder to allow you to sell your home for less than the loan amount. It allows you to sell the property and make a little money when your home is clearly not sellable due to first and second mortgages that exceed the value of the home. The bank has an incentive to agree as they rarely receive anything close to the true value of a home at the sheriff's sale that occurs after a foreclosure.

A loan modification is where we attempt to reduce the amount of the mortgage on a home. Obviously, this is a great remedy for a homeowner whose mortgage exceeds a home's true value. There are programs and laws in place that make loan modifications possible, but most are based on need. It is difficult to arrange for a loan modification if the homeowner has income or resources to pay a mortgage, even if it is more than the home's market value.

If you have a judgment against you we may be able to remove it, if it is recent and you have a valid defense. Also, we can assist you in working out payment plans for your creditors or a structured settlement that are sometimes for amounts less than half of what you owe.

So, while bankruptcy is always an option, it is not your only one. If you would like to discuss bankruptcy or the alternatives to bankruptcy, please give us a call.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.