Many lawyers quickly file for bankruptcy without attempting to fully understand your financial or lifestyle situation. Then explore all options including bankruptcy , paying creditors in full , doing nothing , and debt workout. A Chapter 7 bankruptcy remains on your credit report for 10 years and may have to be reported on financial statements even longer. A workout allows you to avoid the emotional and credit scars caused by bankruptcy. For those with hard assets , such as real property, a workout allows you to retain greater control and increase the likelihood you may keep your assets if that is your wish.
Workouts even help to keep or control soft assets such as cash.
Many ways exist to keep property through a workout. Of course, the sooner the problem can be dealt with the more likely it can be cured. I have seen clients years behind in mortgage payments. A workout for someone only a few months behind bares more chance of success. In most situations we accomplish this through a refinance.