Bankruptcy may not be the only option

When an individual is incapable of meeting his or her financial obligations, bankruptcy is perhaps one of the more familiar remedies. However, bankruptcy can have some negative consequences: it may injure a person's credit score, and may not actually bring about the intended results, particularly if a person has mostly secured debts, such as a home mortgage, which the person cannot afford. Debtors seeking an alternative to bankruptcy may wish to consider pursuing professional assistance in obtaining a loan modification as to a mortgage.

Obtaining a loan modification

There is no magic in obtaining a loan modification. The process involves the accumulation and organization of relevant documents, which are to be submitted to the lender through a loan modification application. Individuals with the time and wherewithal can attempt this process alone, but the unfortunate reality is that few people can afford the time needed to properly carry out this tedious process.

Many individuals who are in debt are unfamiliar with the loan modification process and are unclear on where and how to obtain the necessary documentation. As a result, many people choose to hire an experienced attorney to help them obtain a loan modification and view this as an investment that will save them a great deal of time and energy.

Modification through litigation

A major benefit of hiring an attorney to spearhead the loan modification application process is that if the bank denies the request, the attorney will already have first-hand knowledge of the debtor's case and may be able to litigate the case or to then recommend bankruptcy.

An individual can retain attorneys to defend anything from improper foreclosure proceedings to improper evaluation of the debtor's loan modification application. Depending upon the merits of those claims, the bank or creditor may be inclined to weigh the costs of litigation in its decision to approve a loan modification.

An attorney can also assist the debtor in filing for bankruptcy if that is truly the best option available, and the bankruptcy process can also bring about a loan modification. Regardless of the best solution for each individual debtor, retaining an attorney allows that debtor to evaluate the many available options on a level playing field.

An attorney can help

Whether through spearheading the loan modification process or representation in formal legal proceedings, an attorney can provide an individual or family with a full range of debt relief options to help deal with financial obligations. Anyone in dire financial straits should speak with an experienced attorney to learn more about the available options.