Bankruptcy Alternatives

Below are a few examples of bankruptcy alternatives that the Delaware County Bankruptcy Attorneys at Sadek & Cooper Law Offices regularly handle.
 

DEBT CONSOLIDATION

Our lawyers understand that a client wants to consider all debt resolution options available. We are able to explain the debt consolidation process and anticipated monthly payments associated with a consolidation plan. A consolidation involves a regular monthly payment automatically withdrawn from a checking or savings account for three to five years, depending on the amount of debt and monetary amount of payments made. In debt consolidation payments are earmarked and set aside for the purpose of settling the outstanding debt, rather than discharging the debt in a bankruptcy.
 

FACING FORECLOSURE

Mortgage Modification: It is no secret that many houses are worth less than the mortgaged amount. A mortgage modification is a restructuring of the original mortgage and may:

  • lower the mortgage amount,
  • lower the mortgage interest rate,
  • extend the mortgage term and
  • include mortgage arrears in the modified mortgage balance.

A mortgage modification is requested by a mortgagor or borrower usually once they have fallen behind on mortgage payments or in danger of mortgage foreclosure proceedings. A successful modification generally takes 3-8 months to complete. A mortgage modification may include placing mortgage arrears, interest, delinquent taxes and/or insurance in the principal balance. Further, a mortgage modification may reduce the interest rate on the subject loan. Although a mortgage modification can lead to a reduced monthly mortgage expenses, generally it results in a lengthened mortgage repayment term. Lastly, mortgage modifications are often granted during the course of a Chapter 7 or Chapter 13 Bankruptcy Proceeding so we may advise you to pursue both options.

Short Sale: A short sale occurs when the mortgage holder approves a sale for less than the mortgage amount. This situation is seen when the seller is having a difficult time making mortgage payments and the homes value is less than the mortgaged amount. The seller may benefit from a short-sale in that they may avoid any resulting deficiency judgments. However, a short sale requires a third party buyer that can obtain valid financing for purchase of the subject property.

Deed in Lieu of Foreclosure: If a homeowner is unable to make regular monthly mortgage payments and is facing foreclosure the mortgage company may agree to a deed in lieu of foreclosure. Basically, the homeowner vacates the property and avoids the prolonged mortgage foreclosure process. In exchange the mortgage holder saves money on foreclosure fees and costs and assumes title to the home in a much more timely manner.

Pre-Foreclosure Forbearance Plan: Prior to a mortgage foreclosure taking place the mortgage company may be amenable to the reinstatement amount being repaid over a short period of time. The pre-foreclosure forbearance plan repayment is different than a modification in that it does not alter the overall terms of the loan.

County Court Litigation Defense: Litigation strategies depend on the particular situation at hand. Sadek and Cooper has successfully defended Mortgage Foreclosure Actions through County Court Litigation. County Court Litigation defense is generally more effective earlier in the mortgage foreclosure litigation process.
 

CREDIT CARD DEBT

It is not uncommon for credit card companies to file collection lawsuits in Delaware County, PA against borrowers who are delinquent on their scheduled payments. As an alternative to bankruptcy, our lawyers can defend you against the credit card companies based on legal procedural grounds and/or other errors made by the credit card company when filing the claim against you.
 

TAX DEBT

Outside of Bankruptcy the Delaware County Attorneys at Sadek & Cooper Law Offices may be able to assist with your tax debt using an installment agreement or offer in compromise with the IRS.

Call Sadek & Cooper Law Offices at (610) 432-3111 to learn more about how our Delaware County bankruptcy attorneys can provide the best bankruptcy option for you.