Avoid Bankruptcy

Bankruptcy is a federally recognized and regulated practice that allows debtors (you) to cancel many of their outstanding debts through a court order. However, there is no turning back once you file and complete a bankruptcy. Bankruptcy is a life-long, life-changing decision that has serious repercussions you should avoid. You can read our “Understanding the Consequences of Bankruptcy” article to find out WHY you want to avoid bankruptcy. This article will speak to HOW you might avoid bankruptcy.

Because of the legality of bankruptcy, we will not give specifics as to how you might file for bankruptcy. Rather, we will offer ideas that can be utilized in an attempt to avoid bankruptcy.

In most circumstances, the reason why a person files for bankruptcy is because their outstanding debt is larger than any foreseeable earnings that might satisfy the debt. Because a home, in most cases, is the largest investment a family will make in their lifetimes, it is reasonable to conclude that the failure to make mortgage payments will be the leading factor in bankruptcies.

That is where we come in.

What if we could offer you a solution that not only allows you to sell your property, but does so without you having to file for bankruptcy or face foreclose? In this example you would be able to salvage, or at least begin to salvage, your financial stability. You would not suffer all of the consequences that come with bankruptcy. Additionally, you would regain your peace of mind knowing that you no longer have a large mortgage hanging over your head.

Our answer is a short sale. A real estate short sale is simply a transaction where the lending institution agrees to sell their outstanding lien (your mortgage) for less than the amount owed. Find out more about a short sale by reading, “What is a Short Sale?”

Once you have successfully negotiated a short sale with your lender and sold your property, if you are still on the brink of bankruptcy, you may want to consider additional options. You may also consider:  debt consolidation, downsizing a vehicle, cutting costs with buying generic brand foods, looking for a second source of income (becoming a Short Sale Consultant and earning additional income!), and simply getting back to living within your financial means.

If all of the above steps have been employed and you still find yourself struggling to keep your head above water, filing for bankruptcy is your last option. For now let's try and avoid bankruptcy.

If you are a property owner seeking to avoid bankruptcy or foreclosure, or seeking to sell your property quickly at a price the market will bear, we encourage you to start learning how to negotiate a short sale today!