Mounting Debt: Is Bankruptcy an option?

                 During the housing crisis in 2008 and 2009, many people started losing their homes to foreclosure. The job market tumbled, and people all over the country found themselves unemployed and unable to pay their mortgages. Some people had their home values plummet, causing them to be “under water” on their mortgage in that their mortgage balance was higher than the property value of their homes. This caused substantial strife and stress for many Americans as they slogged through the recession in our economy.

                During that time, many individuals turned to bankruptcy to try to save their homes. They also faced aggressive debt collectors and creditors trying to take property and bringing lawsuits against them. Faced with a mountain of debt and no way to pay, many people did not know how to deal with these problems. During that time, the amount of bankruptcy’s filed skyrocketed as people looked to the law to save their homes. Today, the amount of filings has lowered, but the economy has not fully rebounded and people are still facing significant issues paying their mortgages and other bills. Those lucky enough to do loan modifications today find sometimes that even then they can’t pay the mortgage.

                At Parnell, Michels & McKay, we offer over three decades of experience in navigating the difficult bankruptcy and debt collection fields. Our bankruptcy professionals will help you determine the right type of relief for you, whether it is Chapter 7 or Chapter 13 bankruptcy. We offer hands on advice, and will go through all of your finances to determine what the best method is for you to address your climbing debt. As many people may not be aware of, bankruptcy was incorporated into our very constitution. It was one of the pillars in which our country was founded. The concern in colonial times was with people suffering in debtor’s prisons, which happened often prior to the Revolutionary War. The founders of our country, including Thomas Jefferson, created the right to file a bankruptcy to address when American citizens face the very real pressure and stress of owing more money than they can pay. This is why bankruptcy is an important part of our American jurisprudence, and anyone faced with escalating bills should consider whether it is an option for them.

                If you find yourself concerned about your financial future, contact the experienced attorneys at Parnell, Michels & McKay today to see how we can help you navigate your debt problems.