For the last several months, most of the headlines regarding the current foreclosure crisis have involved what are considered sub-prime mortgages.  Consequently, most of the reform and rescue packages were designed to help lenders with sub-prime mortgages.  According to an article in the U.S. News and World report, prime mortgages are now an ever increasing part of the crisis.  Even more concerning, according to the article, is the lack of resources available to help this new group of distressed homeowners.  Many consumers don’t plan to be economically distressed.  You save a little here and there.  You budget your monthly expenses to fit what income you have coming in.  You have what is considered “good debt”, like a mortgage, a car payment, and a small to medium credit card bill that’s manageable.  Good and bad debt in excess of $100,000 can easily sneak up on you.  Then the plan melts down with a lay off notice as the company you work for decides to “right size.”  After that, nothing seems right.  The smallest credit card bill becomes difficult to pay with ever increasing fees and expenses.  Then you get a notice of a rate hike by your electric company.  Everything starts spiraling. To add insult to injury, you find out that you don’t qualify for any of the programs that have been touted in news to help you save your home or refinance your mortgage.

Our economic system is far from perfect.  Consumer reform is finally seeping through the cracks, but it may not be available to you.  However, that does not mean that you have to throw in the towel and give up your home.  Before you give up on your mortgage or sell off everything you own, consider talking to a bankruptcy attorney.  A qualified bankruptcy attorney will go through your debt obligations and help you plan for an effective bankruptcy.  Part of that planning is determining which assets will be protected through bankruptcy.  If your house is homesteaded it will usually qualify as an exemption and be protected through bankruptcy.    Another part of your planning is determining which debts are best to pay off first and how to get the remainder discharged in bankruptcy.   When you are in a spiral, it is extremely tempting to pay off the creditor that is yelling at you the loudest.  Quite frankly, this is just debt collector bullying.  If you have funds available, a bankruptcy attorney can guide you on how to maximize those funds to resolve all your debt obligations through bankruptcy, instead of just the pushiest ones.  Bankruptcy protection is your personalized economic recovery package.  Call an attorney in the Dallas-Forth Worth area today to plan your recovery.