Yahoo! News reported that Alabama's Jefferson County is drowning in $4.1 billion in debt. This is more money than most of us will ever see in our lifetime. The county has tried to avoid bankruptcy since 2008 and according to Yahoo! News they are currently working with Wall Street to settle the debt and avoid bankruptcy for good.

Jefferson County is hoping that by negotiating the debt they will be able to reduce what they owe by $1 billion. If they received this reduction they would ensure that the remainder of the debt would be paid back in installments. The extra revenue would come from small increases to the sewer costs to Jefferson County residents.

Besides being able to reduce their debt through negotiation, another reason to avoid bankruptcy is the extraordinary cost of going to bankruptcy court. With all the costs considered included Yahoo! News suggested it would cost approximately $1 million a month to go through bankruptcy court and the trial could last for as long as 18 months.

Yahoo! News also stated that Jefferson County let go 1/4 of their workforce due to a decrease in government funding. With the 550 jobs lost that is a significant number of households in Jefferson County that may not be able to afford to pay if sewer costs increased.

The cost of going to court is much higher for a County than it would be for an individual but this is a great example of exploring your options with a Chicago bankruptcy attorney before making a decision. Your lenders may consider loan modification in order to continue receiving payments from you towards your debts. Most creditors do not benefit if you file for bankruptcy. They stand to make more money if you continue to make payments, even if the payment amounts have decreased because of the loan modification.

If you are suffering with more debt than you can afford meet with Chicago bankruptcy lawyers to discuss your options. Many bankruptcy attorneys offer free legal evaluations so you can find out if they can help you before you have to pay them any legal fees. Some even offer flexible payment plans for the legal fees owed.

DISCLAIMER: All information on this website are provided for informational purposes only and are not intended to be construed as legal advice. Chang & Carlin shall not be liable for any errors or inaccuracies contained herein, or any actions taken in reliance thereon.

The country is still feeling the after shocks of the recent economic downturn. Jobs were lost all over the country making it hard for citizens to pay their bills and get back on their feet.

An increase in delinquent mortgages leads to more foreclosures and inevitably more bankruptcies. Chicago bankruptcy lawyers can tell you that the sooner you act the better your chances are of saving your home.

But a big problem today is that homeowners aren't so sure their home is worth saving. The Chicago Tribune reported today that home prices in the Chicago area are down 5% from the 4th quarter 2010 and 14% from a year ago.

This is alarming for homeowners because many of them are faced with negative equity. This means that they owe more money on their home then it is worth in today's market. This can be a depressing realization and make mortgage payments seem pointless.

As soon as you become delinquent on your mortgage payments it is best to reach out to a Chicago bankruptcy lawyer. Once you are 90 days late your mortgage company will begin the foreclosure process. Your Chicago bankruptcy lawyers will review your financials with you and determine the best course of action.

If it appears to them that you are financially capable of making your mortgage with a little decrease in monthly payment they can help you petition for loan modification. However if it is clear that you are in no position to continue payments of any kind they can help you find the solution that works best for you. It may be bankruptcy, short sale or deed in lieu of foreclosure. Whatever the best solution is having a Chicago bankruptcy lawyer in your corner will make the process easier on you.

Negative equity is not a reason to stop paying your mortgage. Meet with a Chicago bankruptcy lawyer to find a solution that will work for you.

DISCLAIMER: All information on this website are provided for informational purposes only and are not intended to be construed as legal advice. Chang & Carlin shall not be liable for any errors or inaccuracies contained herein, or any actions taken in reliance thereon.