Dis or Dat? Foreclosure or Bankruptcy?

October 30, 2007 9:04 am Published by

by Mark Zuckerberg               As a bankruptcy attorney in Indiana, needless to say, I hear this question a lot.  MSNBC last week devoted an entire article to comparing bankruptcy and foreclosure,  essentially coming up with the same set of answers I give people every day:             Look at all your options.  Try working out different solutions with your lender. Get the help of a professional.  (On this last point, in the MSNBC article, Ray Hooper of the Consumer Credit Counseling Service of Great Dallas is quoted as saying, " Lenders are more likely to go along with your plan if a competent third party is there to help smooth the process.")            A foreclosure is a very serious thing to mortgage lenders, more serious than a bankruptcy.  So, even if it turns out that you have to move, it’s better to try to avoid foreclosure.  That’s because, if a foreclosure in on your records, you’re probably going to have a lot of trouble when you’re looking for a smaller home or even trying to rent a place to live.            Finding a compromise solution with your mortgage lender is one of the things I work on with clients.  Without getting technical here, two of the mortgage compromise plans we consider are "deed in lieu of foreclosure", and a "short sale".  Both of these involve you moving, but without having a foreclosure on your record.            You also need to remember, as I wrote the other day, that some forms of bankruptcy allow you to keep your home.  When I’m talking to a client, whether that’s a couple, a single parent, or just an individual, it’s certainly true there is no "one size fits all" solution. Designing just the right plan for each situation is what being an experienced bankruptcy attorney in Indiana is about for me.  It’s not just Dis or Dat – it’s creating a strategy that may include filing bankruptcy, and may not.  It’s creating a strategy that may include foreclosure – or may not.              Let’s be honest.  "Foreclosure" and "bankruptcy" are both words you probably never expected to be concerned about. They were just two more words in the dictionary.  But then…life happens.              Talking with an expert in Indiana bankruptcy and foreclosure law can help you find your way, so you can make right choices, starting right now!             


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