Bankruptcy vs. Loan Modification


If you are struggling to pay your mortgage every month due to a recent job loss or the lingering effects of the recession, then you may have to start looking at bankruptcy as a viable financial alternative. Many people are worried that if they declare bankruptcy that they will be forced out of their homes. People equate foreclosure with bankruptcy, but the reality is a very different scenario.

Foreclosure Facts

If you utilize a bankruptcy attorney to guide you through the process of applying for bankruptcy then you will be able to save you home from foreclosure and protect your most precious asset. Foreclosure is not a result of bankruptcy, and if you make the right call, then you can use your bankruptcy to avoid foreclosure altogether.

The value of using a lawyer is the fact that they have the legal qualifications and the local court experience to make sure you make your way through the bankruptcy procedure as fast and as painlessly as possible. A Chapter 13 bankruptcy is the most effective way of stopping a foreclosure before it has even started. The arrears payments on your mortgage will be repaid over a three to five year period and you will not be penalized by your mortgage lender.

Is Loan Modification The Right Way To Go?

Many people in Illinois are unaware of the fact that the sheriff’s sale of your property can be as little as ninety days after the foreclosure is filed against you. Beware companies who say they are working on a loan modification program and who seem to be stalling; you may be facing a foreclosure notice if you are not careful.

This is why it is so important to consult with an attorney who is up to date with the filing of bankruptcy in the local courts. You can also file for a Chapter 7 bankruptcy if you have no means of income to service your debt. If you own a business in the Chicago metro area then you may be able to file a Chapter 11 bankruptcy which will allow you to maintain control of your business and use the future income to pay off your present debts.

When you file for bankruptcy in Illinois you will have to complete a Credit and Debt counseling program before your bankruptcy can be discharged. This is in compliance with the 2005 bankruptcy law changes and your bankruptcy attorney will be able to help you fulfill your obligations to the court in this respect.

All of these options can be discussed with a professional Illinois bankruptcy attorney so that you have a wealth of avenues open to you. Remember that bankruptcy does not mean that your ship is sinking; call a Chicago bankruptcy attorney, it can be the wind in your sails that keeps you afloat and moving forwards.