Today's date

If you can't afford the house

DEED IN LIEU - hand the mortgage company back the deed to your house; walk away

without filing bankruptcy because they will not then sue you for the deficiency balance

SHORT SALE - someone buys your home directly from the mortgage company for the

purpose of renting or land contracting the home to you or someone else

REGULAR SALE - by real estate broker to a third party

WORKOUT PLANS - have your bankruptcy attorney negotiate a lower interest rate or

principal balance due; arrange to put the arrears at the end of the mortgage; arrange to pay

one-half of the arrears now and the remainder over the next several months to one year

If you can't afford your unsecured debt

OFFERS-IN-COMPROMISE - your attorney negotiates with the creditor to pay off

a percentage of what you owe; she will assist you in trying to locate a lump sum of money

ASK CREDITORS TO CHARGE OFF THE ACCOUNT - charging-off only works in

extreme cases wherein a client is not collectible and has minimal assets - but it can work.

The problem is trying to get more than a few creditors to agree.

If you can't afford your secured debt such as your motor vehicle

WORKOUT PLANS - have your bankruptcy attorney negotiate a temporary or permanent

lower interest rate or principal balance due; arrange to put the arrears at the end of the loan;

arrange to pay one-half of the arrears now and the remainder over the next several months to

one year

VOLUNTARILY SURRENDER - and then try offer-in-compromise or request for a

charge-off

IF YOU HAVE TO FILE FOR BANKRUPTCY

DAMAGE CONTROL - your bankruptcy attorney can minimize the damage on your

credit report and thus your future credit by the actions that you take regarding

lawsuits and repossessions

AVOIDING SITUATIONS WHEREIN THE CREDITORS APPEAR AT HEARINGS

OR INVESTIGATE - there are certain actions that will definitely cause you problems during

the bankruptcy process

INCLUDE ALL DEBTS - we insist that you obtain a credit report,

all judgments including divorce decrees, and any business transactions in

companies in which you have a proprietary interest

TIMING - is critical as to the discharge of debts, payments that you may have made to

creditors including relatives, transfers of assets such as cars, health insurance

coverage, and pending potential lawsuits