Should you settle with your creditors? Is it worth fighting (in court, obviously) with a mortgage lender? How quickly should you address an impending lawsuit?
There is no one-size-fits-all answer. However, you should always remember that you may be liable for collection costs, interest and attorney fees. Thus, if you
1) want to settle
2) plan to file for chapter 13
3) are ineligible to file for bankruptcy protection
it is important to remember that "prolonging the agony" by avoiding creditors, ignoring summons, failing to appear at court proceedings may result in unmanageable amount of debt. It is especially true with condo associations and mortgage lenders - a small $2-3k deficiency will snowball into an unmanageable $30k default within a matter of months.
Our commentary on the Maryland foreclosure and bankruptcy law, HAMP guidelines and other issues that affect borrowers and consumers.
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