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Bankruptcy Alternatives in Katy, TX

Bankruptcy May Not Be Your Only Choice

You may have been living with debt for so long that it almost seems like the normal way of life, but you still want to avoid declaring bankruptcy. Perhaps your primary concern about filing for bankruptcy is the impact that it can have on your credit score. For others, considering bankruptcy alternatives may be a matter of pride or principle and a determination to avoid this except as a last resort. Maybe you believe your problems with debt are not yet bad enough to justify a bankruptcy case. Maybe you believe your income is too high or too low to consider bankruptcy. Bankruptcy is certainly not right for everyone, but it is important if you are experiencing ongoing financial issues to at least consider all options so you can make an informed decision. If you want to find a way to tackle your debt problems head-on and put it behind you as quickly and responsibly as possible, you need an experienced bankruptcy lawyer in Katy, TX. A Katy bankruptcy attorney from the Law Office of Corey L. Mills can help you explore your legal options to find an effective strategy for you.


Although declaring bankruptcy under Chapter 7 or Chapter 13 may be the fastest and most effective ways to put an end to a debt problem, they are not the only ways to handle serious debt. In the event that you are struggling to keep up on your home mortgage payments and are worried about the prospect of an impending foreclosure, the best approach may be to hire an attorney or work directly with your home loan lender regarding non-bankruptcy related options.

Loan Modification
An attorney from our firm could represent you in negotiations with the bank over a loan modification, which could leave you with a reduced loan payment, a lower monthly interest rate, or an extended loan period. The goal of a loan modification is to give the borrower a more affordable monthly payment.

Short Sale
If your house is underwater – meaning it is worth less on the real estate market than you owe on the loan – then your best option may be to negotiate a short sale. In a short sale, the lender agrees to allow you to sell the house for the fair market value without holding you liable for paying the difference between the sale price and the loan balance. A short sale does negatively impact the seller’s credit but not as greatly as a foreclosure or bankruptcy.

Deed in Lieu of Foreclosure
A deed in lieu of foreclosure is another strategy for avoiding the serious consequences of a foreclosure. In this approach, you essentially surrender the deed to the lender with the agreement that you will thereby be forgiven of any obligation to pay on the loan. It is necessary to secure the consent of the bank before carrying out this transaction.


For many people, a home mortgage is not the primary debt problem, or if it is, there are other financial issues causing them to no longer be able to pay their mortgage note. The ready availability of credit cards, car loans, lines of credit, and other types of credit has lured countless Americans into deep debt over the years. As bad as it can be to owe a large amount to one creditor, those who have several debts often find it difficult to balance several monthly payments and to keep up with the interest on their loans. One way to address this problem is through debt consolidation, which involves securing a new loan large enough to pay off all the other debts. This leaves the debtor with a single monthly payment – ideally at a lower interest rate – which is easier to confront and manage. If the debt is large enough, one of the greatest debt consolidation tools available is Chapter 13 Reorganization, where you pay your unsecured creditors (credit cards, medical debts, etc…) based upon your ability to pay for a period of 3-5 years. In most Chapter 13 cases, the amounts paid to the unsecured creditors is substantially less than what is owed. However, even if you are paying 100% of the unsecured debt back, there is typically no interest on the amounts being paid back and you know there is a light at the end of the tunnel regarding your debts.


We understand how stressful it can be to live with debt and want to give you the help you deserve. Searching for a Lawyer for your bankruptcy in Katy? Contact us now to schedule a free initial consultation with an attorney from our team, to learn more about your options, and to take the first steps in your case.

it won’t be nearly as bad as you feared it would be