Even though modern bankruptcy laws are complicated, you can use credit card money to go for debt counseling. While bankruptcy proceedings can be brutal, once you have filed the paperwork, your debtors cannot take you to court. This also means that mortgage companies cannot foreclose. In order to use this tactic, you will need to be practical about your financial affairs, and how state laws work in regards to the settlement of your debts. 

If you do not even need to open letters from your lenders to know they want money, chances are you haven’t simply forgotten to pay the bill. In fact, you were probably absolutely aware that you were not going to be able to make that particular payment on its assigned due date. When it comes right down to it, your lenders are just trying to be polite with all those “reminder letters” and phone calls.  The bottom line is they know the truth and so do you.

Without a question, anyone that has a mortgage needs to seek debt counseling as a prelude to filing for bankruptcy relief. Regardless of whether or not you ever decide to file bankruptcy, this step alone can be of immense benefit to you. In some cases, these counselors may even help you come up with a repayment plan that puts you on a more solid financial ground than you were before. Even if you are in the early to mid-level stages of foreclosure, debt counseling and bankruptcy proceedings can still help you avoid foreclosure for a few more months.