What Are 3 Alternatives to Bankruptcy in Delaware County?

What Are 3 Alternatives to Bankruptcy in Delaware County?

If you’re a Delaware County resident who’s been struggling to keep up with credit card bills, medical bills, mortgage payments, or other expenses, you may have thought about filing for bankruptcy.  However, while bankruptcy can be a useful strategy for managing debt, it isn’t always the best solution for every situation.  Depending on your circumstances, it might make more sense to explore an alternative to bankruptcy, such as a mortgage modification, debt consolidation, or a pre-foreclosure forbearance plan.  When you contact our Delaware County Chapter 7 lawyers for your free bankruptcy consultation, we can discuss which financial strategy is right for your situation.

3 Alternative Options to Filing for Chapter 7 or Chapter 13 Bankruptcy in Delaware County, PA

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If you are going through a financial crisis, bankruptcy may indeed prove to be the most practical and efficacious solution.  However, filing for bankruptcy may not be necessary if it is possible to resolve the issue by other means.  To give you just a few ideas of the possibilities, our Delaware County Chapter 13 bankruptcy attorneys will examine three examples of bankruptcy alternatives for debtors in Pennsylvania:

  1. Mortgage Modification
  2. Pre-Foreclosure Forbearance Plans
  3. Debt Consolidation

Whether you choose to file for bankruptcy or pursue an alternate course of action, your decision will have significant financial repercussions that can continue to shape your future for many years to come.  Before you make any major legal decision, you should always consult with an experienced attorney for personalized guidance that is specific to your circumstances.

How Does a Mortgage Modification Work?

Are missed mortgage payments the main reason you have been thinking about filing for bankruptcy?  If so, mortgage modification may be a more appropriate strategy.

Like the name suggests, a mortgage modification is a restructuring of your current mortgage.  The purpose of a mortgage modification is to make your payments more manageable by reducing what you owe each month.  Depending on your financial circumstances, the mortgagee (lender) may consent to significant changes, such as:

  • Changing a variable interest rate to a fixed interest rate.
  • Forgiving part of your principal balance.
  • Lowering your interest rate.

The mortgage modification process in Pennsylvania typically takes anywhere from three to eight months to complete successfully.  The eligibility criteria for mortgage modifications vary from servicer to servicer, but our Pennsylvania bankruptcy attorneys can help you determine whether you qualify.  Your attorney will also be able to handle your mortgage modification paperwork, answer your legal questions, and protect your best interests as a homeowner.

What is a Pre-Foreclosure Forbearance Plan?

If you are going through a temporary financial crisis, such as a job loss or temporarily disabling injury that is expected to heal in the future, entering a pre-foreclosure forbearance plan may make more sense than filing for bankruptcy.  In a pre-foreclosure forbearance plan, the mortgagee may agree to temporarily suspend or lower your payments so that you can continue to pay your mortgage.  Generally, these plans last for up to six months.

What’s the Difference Between Debt Consolidation and Bankruptcy?

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Though bankruptcy can both simplify and reduce the payments you owe to your creditors, it should not be conflated with debt consolidation, which is an entirely different concept.

In debt consolidation, the debtor negotiates with his or her creditors with the goal of combining his or her debts into one monthly payment.  When done successfully, this can have the effect of lowering your interest rates, reducing what you pay each month, and ultimately, helping you escape debt more quickly.  As you can imagine, making one monthly payment is much simpler than keeping track of multiple payments, which also makes it easier for debtors to consistently make timely, full payments each month.  Debt consolidation may be right for you if you have numerous creditors and high interest rates.

Delaware County Bankruptcy Attorneys Serving Chester, Drexel Hill, and Ardmore

Remember: the strategies we have described here represent only a few examples of the numerous non-bankruptcy debt management options that may be available to you as a Delaware County resident.  When you contact Sadek & Cooper Law Offices for a free consultation, we can review your circumstances and financial goals in detail to make a determination about which strategy is optimal for your situation.

Sadek & Cooper Law Offices proudly serves all corners of Delaware County, including but not limited to Chester, Drexel Hill, Ardmore, Yeadon, Broomall, Darby, Lansdowne, Media, Woodlyn, and Collingdale.  If you live in one of these communities, or other communities in Delaware County, our Pennsylvania bankruptcy lawyers may be able to help you get your debt under control.  To discuss your options in a free and completely confidential consultation, call Sadek & Cooper Law Offices at (215)-545-0008 today.




Doug Tinlin
Doug Tinlin
06:55 15 Feb 18
Brad Sadek gave me hope when he decided to handle my mortgage for enclosure defense. I had exactly 10 days left of the 30 days ultimatum given me, but he was able to bargain for an extra 30 days for me to pay up. That duration turned out just right.
Jacinth Jacinth
Jacinth Jacinth
16:07 31 Jan 18
Excellent service. Brad and Matt were outstanding and friendly. They helped me through this. I’ve never met attorneys like these. Thank you!
julie njoku
julie njoku
12:29 24 Jan 18
Brad Sadek is excellent!. He understands and he's fair. You feel like you have someone fighting for you. The staff is friendly, professional, and courteous. These guys are the best at what they do !
Owen Black
Owen Black
20:14 09 Jan 18
Thanks for the great service! I would recommend this firm highly. Throughout the years I have been helped by this firm greatly and very much appreciated.
Steven Rychalsky
Steven Rychalsky
15:30 09 Jan 18
Sadek and Cooper law office was a wonderful experience to work with. Bankruptcy is a difficult experience but they helped with the stress so much and made it easy. I would recommend Sadek and copper too anyone.
Chris Kourelias
Chris Kourelias
19:09 28 Dec 17
Working with both Brad & Matthew was a pleasure. Both gentlemen are extremely knowledgeable and helpful in providing me the right assistance needed to make the correct decision to benefit me in the long run. I would recommend both candidates to anyone looking for assistance with a reputable law firm.
Jennyfer Santana
Jennyfer Santana
21:17 21 Dec 17
Highly Recommended. Matt & Brad assisted with my case. I felt comfortable throughout the entire process. Matt was very understanding, patient, and ensured he answered all my questions! Both great guys and very friendly! It was a pleasure working with Matt and Brad.
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