Counseling Assistance Programs For Homeowners Considering Bankruptcy–Options That Offer Alternatives And Debt Relief

Numerous Americans are still struggling financially due to setbacks like unemployment or factors related to their health which may have suddenly brought about either a decrease in income or a sudden increase in debt, which is the reason that some homeowners are currently considering bankruptcy as they see their financial position seemingly deteriorate to a point where they feel there is no return. However, homeowners who are considering bankruptcy have bankruptcy counseling assistance and credit counseling resources that may help them not only to look at their financial position and explore options that may help them find more affordability when it comes to meeting their financial obligations, but if it is deemed that bankruptcy could potentially be one route a homeowner might have to take, bankruptcy counseling sessions can help consumers better understand what bankruptcy will mean for their specific financial life.

Usually, consumers who return to an agency that will offer pre-bankruptcy counseling will be in a position where they will not only be able to review the bankruptcy process and get a better understanding of what this entails, but of course a good counseling agency will have their representatives offer possible alternatives to bankruptcy and explore how these alternatives may be helpful. Sometimes there are simple solutions that may help consumers avoid filing bankruptcy as this can be a major setback in a consumer’s personal financial life, no matter how bad of a financial position they happen to be in at the present time.

While there may be no simple solutions, there are some counseling agencies that may be able to offer a debt management or debt settlement opportunity for homeowners who otherwise may be considering filing bankruptcy due to the fact that they are feeling overwhelmed with debts that may range from loans and credit cards to their mortgage. Homeowners must also remember that there are options like modifications that can make a mortgage payment more affordable or, in cases where unemployment may be a factor, forbearance plans have been used by homeowners in the past as a way to help them avoid foreclosure by foregoing payments on their mortgage payment. Also, there are states where high levels of unemployment are currently in place from programs like the Hardest Hit Fund that could potentially help homeowners not only with financial stresses related to unemployment but those who may be behind on their mortgage or are facing negative equity may also be aided by certain programming from their servicer and state housing agency.

However, the good news is that men and women who are considering bankruptcy are typically required to participate in a pre-bankruptcy counseling session, so this could potentially stop some consumers from making a mistake if the bankruptcy is potentially avoidable for their situation, but many officials want homeowners to explore credit counseling sessions well before bankruptcy is considered due to the fact that there may be preventative measures that could stop any damage from occurring in a homeowner’s financial life by offering these assistance options before a homeowner’s finances become too strained.

Homeowners may also be able to consult with housing counseling agencies like those from the HOPE Hotline as a way to help them explore specific cost reduction options available for a homeowner’s mortgage payment, as there are many homeowners who are considering bankruptcy simply because their home loan obligation, coupled with other debts, has become too difficult to meet. Since the economy and many consumers continue to struggle, homeowners do need to be aware that even though bankruptcy may have been the right choice for some, homeowners must take action to curtail any problems in their financial life early by using nonprofit credit counseling or consulting a financial professional, but of course, even if a homeowner goes so far as to have to participate in this bankruptcy counseling session, there may still be ways to avoid filing for bankruptcy so that a homeowner may find options to get back on their feet financially.