There are a number of reasons why people in Maryland fall into financial troubles. Some are based on poor decision-making and irresponsible spending habits, while others are simply unavoidable. An example is found in recent statistics that show that workers in the gas, oil and coal industries are seeking consumer bankruptcy protection in increasing numbers.
A great number of Maryland residents are also sports fans, and they follow one or more teams each season. Many are aware that professional sports players bring in substantial earnings, but fewer people realize that a significant percentage of athletes end up in serious financial straits, often seeking bankruptcy protection. A recent article looks at the reasons behind that statistic, and some readers will recognize those choices and behaviors as present in their own lives.
Sometimes the best loan modifications are scary for our clients. In particular, a loan modification with a balloon payment at the end of the loan is a great result for a borrower who cannot afford to pay a mortgage payment on the full balance of the loan even if the interest rate is reduced. While the lender may be reluctant to reduce the loan balance, although this is also a possible outcome; the lender may be willing to "balloon" out a portion of the balance of the loan without interest.
There are many reasons why individuals and businesses may find themselves facing insurmountable debt burdens that they cannot pay off. When these difficult financial situations arise, Chapter 11 bankruptcy may be a viable option. Under this Bankruptcy Code option, reorganization through a court-approved plan can provide the means for Maryland businesses or qualified individuals to address their financial obligations.
When seeking a loan modification for our clients, we aggressively pursue the best possible result by efforts to guide the lender to a favorable outcome based on the facts. This requires extra work by phone calls and letter writing, but the results are worth it.