Bankruptcy Options

Below are a few examples of the bankruptcy alternatives that the Philadelphia BankruptcyAttorneys at Sadek Law Offices, LLC 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 A consolidation involves a regular monthly payment automatically withdrawn from a checking or savings account for three to five years, depending on the amount of debt and monetary amount of payments made.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.

Mortgage companies are currently receiving numerous requests for modifications and the length of time to finalize a modification can vary from one month to nine months.

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.

CREDIT CARD DEBT

It is not uncommon for credit card companies to file collection lawsuits in Philadelphia, 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 Philadelphia Attorneys at Sadek Law Offices, LLC may be able to assist with your tax debt using an installment agreement or offer and compromise with the IRS.