The majority of Dallas bankruptcy cases are brought on through unavoidable financial hardships. Many hardworking people have suffered at the hands of the recession and failing housing market. While bankruptcy can provide the relief people need, it shouldn’t be the first option considered in the fight against debt.
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Although debts are stressful and often feel time constrained, you shouldn’t file for bankruptcy without considering all of your options. Debt negotiation with creditors is an underutilized tool that can often lead to debt relief without the need for bankruptcy. If your debts have yet to fall behind, or you are not severely delinquent on your accounts, you have a good chance at negotiating a deal with creditors. However, if your account have been in default for several months, you have received multiple collection letters, notifications of a lawsuit or your wages have been garnished, bankruptcy may be your better option.
One of the biggest reasons in recent years for filing bankruptcy is the threat of foreclosure. While bankruptcy can halt foreclosure proceedings, it cannot resolve your underlying mortgage debt issues. If your home has yet to enter foreclosure and you have the financial means available to maintain your mortgage with a little help, resolving your issues directly with your lender can be a better solution. Mortgage modification and refinancing are two lender-based options for fighting the threat of foreclosure. However, if your home is already in foreclosure and/or you do not have the financial means to maintain a modified mortgage, bankruptcy may be your better solution.