Bankruptcy is not the only area of law that I practice. Most prominently, I also practice foreclosure defense. My knowledge of mortgage foreclosure usually helps me to form a plan of attack with a client's debts. This is because many times a foreclosure is what causes a person to consider bankruptcy. The majority of my clients with homes in foreclosure have homes that are 40-60% upside down. That is, the value of the property is 40-60% less than what is owed on the mortgage.
As many people begin to consider bankruptcy as the option for dealing with the debt associated with a foreclosure, I think it is important for me to address this intersection of the law. Over my next several posts I will discuss how mortgages can be treated in bankruptcy and why this is important overall for a client and for the public at large. Often the way that a mortgage will be treated in bankruptcy will be the impetus for a person to choose on chapter over another or choose to file at all. My job often consists of making suggestions to a client as to what may be the best way to deal with their debt. I create options. Usually, a person will initially balk at bankruptcy because of the stigma which i previously discussed on this site. The goal is not to convince a person to file a bankruptcy, but simply for the client to consider bankruptcy as a viable option. If I can help a foreclosure client to consider more options, then I am doing my job.
To get back on track, I will be discussing some recent developments in foreclosure, as it relates to bankruptcy, in my next few posts. Stay Tuned.