Thoughts from Our Bankruptcy Lawyers
The modification of a home loan and the restructuring of debt may seem like a smart and effective solution to challenges with debt. After all, the promise of a more favorable interest rate and a better-organized plan for repayment can be alluring. Unfortunately, loan modifications are often temporary fixes to bigger problems, when people may have been better off filing bankruptcy or using another option for debt relief.
At the Debt Relief Legal Group, our Tampa bankruptcy lawyers understand what our clients are faced with regarding debts in Florida and know that loan modifications and other alternatives can often be empty promises that do not present real solutions. With more than 35 years of combined experience in Tampa bankruptcy, we can provide the advice that you need to make the right choices for you and your family.
Problems With Loan Modifications
While loan restructuring may seem attractive, it rarely creates a solution that is lasting, and it will not eliminate debt in the same way that bankruptcy can. Additionally, creditors will not be stopped with a loan modification, and you may still be subject to serious financial challenges. Creditors may change their terms and provide little relief, leaving you with the same problems you had at the start.
Bankruptcy often provides a better answer for the short term and the long term. It is important to know the truth about what loan modifications can and cannot do for your situation.