Live Chat
During This Challenging Time

We are open for business and remain dedicated to your case! All those working on-site and remotely are still available to answer your questions. The well-being of our clients and staff are vital, so we will provide updates as the situation progresses.

During This Challenging Time Close

Remember Your Pre-Bankruptcy Options

September 29, 2012

If you’re a homeowner struggling to make your debt payments, you should remember several important rules before you engage in a strategic default, submit to foreclosure, or declare bankruptcy.


Rule No. 1: Your home loan may be as much a millstone around your bank’s neck as it is around yours. In recent years, thousands of homeowners have surrendered their homes to the bank or defaulted on their residential mortgage. As a result, the balance sheets of many banks remain clogged with an excessive amount of residential real estate and bad debt. Consequently, many banks are willing to negotiate with their debtors in order to keep the loan and the asset in the debtor’s hands – and off theirs.


Rule No. 2: A home loan is a contract with a financial institution. And as with any deal, the parties can voluntarily change the terms even after they sign the contract. Whether you and your bank agree to a forbearance, a loan modification, a sale, a short sale, or a deed in lieu of foreclosure, these kinds of ameliorative efforts can give you the breathing space you need to avoid a more drastic and permanent decision.


Rule No. 3: An attorney can often help you sort through these and many other challenging financial and legal decisions. Renegotiating your lending agreement carries with it the possibility of altering your legal rights. And many distressed debtors ultimately need a bankruptcy or foreclosure option, despite successfully changing the terms of their loan. As you consider how you should proceed, an attorney can help you understand your choices and help you make the right one.


The attorneys at the Dallas law firm of Fears Nachawati have years of experiencing advising distressed debtors. Whether you need a loan modification, a strategic default, or outright bankruptcy, we can guide you through those important decisions. Talk to our professionals today to learn about your next steps.


Use the form below to send us a note, call us at 214.890.0711 or chat with us live. We are eager to help with your legal needs. Please keep in mind that any unsolicited information sent through our website cannot be treated as confidential. Contacting us through this site does not create a representation relationship with Fears Nachawati.

Contact Us


With offices across Texas, and attorneys licensed in Texas, Florida, Arkansas, New Mexico, California, Illinois, District of Columbia, Missouri and Oklahoma, Fears Nachawati is dedicated to attaining the best possible solutions for our clients’ business and personal needs. We strive to be professionals who are creative, empathetic and reliable.

All Areas Served

We Can Help

Contact Fears Nachawati today

Free Consultation

Live Chat (Online Now)