There are a lot of different reasons why individuals end up having to file for bankruptcy. It could be that they have lost their job and are not able to meet their financial obligations. It may be that they have been hit with unforeseen debt such as medical debt. It can even be because some bad financial decisions were made and this has financially ruined them.
Many parents will overextend themselves by trying to help their children with their educational debt or a young couple that wants to buy their first home. As a result of this the parents may take out a mortgage on their home to help meet the needs of the younger people and then find themselves in a serious financial situation.
If the young couple is not able to meet their financial obligations it can then now become the responsibility of the parents and they are now trying to carry the costs of two homes.
Some individuals will make an attempt for a short sale in a situation like this but this may not always be the answer. It could be that the bank won’t take back the property they hold the mortgage on or there are no buyers in the market.
Basically what it comes down to when the liabilities are much greater than the assets it may mean that bankruptcy is going to be the best form of debt relief so individuals can start over. Trying to spend months and years on repairing a very serious financial situation may not be the solution.
Seeking out a quality Houston bankruptcy attorney should be the first step that is taken as this professional can help decide whether bankruptcy is the best option, and if so which form of bankruptcy will be the best solution.