Wednesday, August 1, 2012

Doing A Short Sale Or Filing For Bankruptcy

Tim Mackey is a Scottsdale-based lawyer who handles all types of bankruptcy and short sale filings for clients at the Mackey Law Firm PC. According to Mackey, when it comes to deciding between a short sale versus bankruptcy, neither option is necessarily better than the other.

A short sale and a bankruptcy are two very different processes. As a bankruptcy lawyer in Scottsdale, I have seen people choose short sales and bankruptcies for all types of different reasons. Be it from a personal liability standpoint or a tax standpoint, there are a lot of reasons why bankruptcy or a short sale might be tools that we would want to use.

Short Sale
If an attorney could secure the appropriate releases from a lender, then a short sale could certainly be a viable option for a homeowner who gets in over his head on a mortgage. And in most scenarios, a short sale will do much less damage to a person's credit score than a foreclosure. But when compared to a bankruptcy, short sales might not always be the more favorable option for every client.

Whether or not you should file for bankruptcy depends on your specific financial situation. In cases where a person's bank or lender refuses to negotiate on the terms of a mortgage or discharge any of the debt from a mortgage, filing for bankruptcy might very well be a better option to try than a short sale. In particular, if a person will still be left with a personal liability or debt after the short sale or foreclosure has gone through, then that is when bankruptcy starts looking like the better option.

Ultimately, the decision whether or not to file for bankruptcy depends on multiple factors that are going to be different for every individual. Among these factors, in my experience, are the client's financial assets, liabilities, current income, and his desire to retain or dispose of the physical property in question. That's why it is hard to make a blanket statement regarding which option is better than the other. A bankruptcy lawyer in Scottsdale would have to weigh all of these factors before offering his opinion about the topic to a client.

Bankruptcy is a right that everyone has, and in a lot of cases, it is the best decision. For many of my clients in recent months, bankruptcy has proven to be the better option. Rather than looking at bankruptcy as giving up, more people are now choosing to look at it as a form of protection that is offered to them by the government. While a person is in bankruptcy, he can shield some of his assets and future wages from creditors, which he would not be able to do through a short sale. In addition, some bankruptcy filers are able to work out plans that allow them to keep their homes.

Bankruptcy Lawyer
Generally, bankruptcy ends up being the better option to go with for individuals with a lot of personal assets at stake, along with anyone whose bank or lender refuses to negotiate on the terms of his mortgage. On the other hand, a short sale tends to be the better option for people who are concerned about their credit scores, because those are usually not affected very much by going through a short sale on a property.

If you're struggling to make your monthly mortgage payments, then you should visit a qualified bankruptcy lawyer to discuss your options. For people living in the Scottsdale area, Mackey Law Firm PC is a firm that can handle all types of bankruptcy, short sale, and foreclosure cases.

This article is for informational purposes only. You should not rely on this article as a legal opinion on any specific facts or circumstances, and you should not act upon this information without seeking professional counsel. Publication of this article and your receipt of this article does not create an attorney-client relationship.

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