A sudden job loss or health concern can quickly alter one’s financial picture. One day the South Carolina family is living comfortably in their home, bills are being paid and there is even money left over to enjoy the occasional splurge. The next day, tragedy strikes and the family’s financial situation immediately changes. When this happens, the family may be faced with foreclosure unless they can find a way to restructure their financial obligations to allow for the home to be saved.
One of the first steps the family will want to take is to analyze their budget. Based upon the changing circumstances, what income can the family expect to receive? Additionally, which expenses must be paid? Which expenses can be eliminated? Once this has been accomplished, the family will have a good idea of where they stand financially.
After this has been accomplished, a number of decisions may need to be made. It may be possible to increase income by taking on an extra job. Or, it may be possible to reduce expenses; some lenders may be open to this option. After these options have been exhausted, there still may be more that needs to go out than is coming in.
In a situation such as this one, filing for bankruptcy may be in the South Carolina family’s best interest. Even if the family decides that bankruptcy is the appropriate choice, it may be possible to prevent a foreclosure. As long as there is enough income to cover the mortgage payment and other necessary living expenses, it may be possible to reaffirm the mortgage and exclude it from bankruptcy proceedings. Experienced legal counsel can assist the family in determining what they should do.