Central Arkansas Loan Modification Attorneys
At the Pray Law Firm in North Little Rock, Arkansas, our lawyers understand that bankruptcy is not something that people are eager to jump into. We know that before you decide to file bankruptcy, you will want to learn about all of the available alternatives. When reviewing the alternatives, there is one thing we always tell people to keep in mind: the law is designed to protect you. Bankruptcy is supported by law and is often the most effective debt solution.
Is Loan Modification a Viable Alternative to Bankruptcy?
If done properly and the creditor stands behind it, a loan modification can be an effective method of dealing with unmanageable debt. Unfortunately, lenders are rarely excited by the opportunity to reduce interest rates or expand the duration of a loan, thus reducing monthly payments. Despite government programs in place that address modifying home loans, actually getting a loan modified may seem like moving a mountain. Furthermore, there is no legal requirement for lenders to follow through on promises to modify loans.
Additionally, many people have more than one debt to deal with. If you are successful in modifying a home loan, you have addressed one debt. What about the rest? In many cases, loan modification is most effective when paired with bankruptcy, rather than as an alternative.
What About the Companies Advertising on TV?
Have you seen advertisements for debt consolidation agencies? They make a lot of promises. Can they stand behind those promises? Not really. Those promises have no legal backing, and when the debt consolidation agencies break their promises, their clients are often left in worse positions than when they started their repayment plans.
Contact Us for a Free Consultation
To speak with one of the North Little Rock bankruptcy alternatives attorneys at our firm, call 501-588-7044, or contact us by e-mail.
