Finding Effective Solutions for a Better Future
If you are in the midst of a difficult financial situation, you might be
considering filing for bankruptcy. In many cases, filing for a Chapter
7 or a Chapter 13 bankruptcy is an effective way to clean the slate and
embark on a more hopeful financial future. However, before you walk down
either of these paths, you might first want to consider some of the available
alternatives to bankruptcy. At San Diego Legal Pros, our bankruptcy law
firm will explore all avenues and options to ensure you make the best
possible decision for your circumstances.
Get started on achieving debt relief today and give our office a call at
(888) 875-9190 to schedule a free consultation with a knowledgeable member
of our team.
Dealing with Your Creditors
If creditors are harassing you, filing for bankruptcy is not necessarily
the answer. If you really want to get your creditors to back off, there
are federal and state debt collection laws that can protect you from abusive
debt collector conduct that you should use to your advantage.
If you have some income or assets that you would be willing to sell, it
might be best to try to negotiate with your creditors rather than file
for bankruptcy. Oftentimes, creditors will agree to a repayment plan since
it is a much more beneficial option for them as opposed to a Chapter 7
bankruptcy, which would discharge the debts, or a Chapter 13 bankruptcy
that would result in a court-approved repayment plan.
In some cases, it might be easier to repay debt when there is only one
payment that needs to be made to a single creditor. Consider some of the
following debt consolidation options:
A debt consolidation loan: Through debt consolidation, you can combine separate debts into one loan.
As a debtor, you will still owe the same amount, but the interest rate
and monthly payment will be lowered as a result.
Transfer your debts to a low interest credit card: There are some credit card companies that provide low transfer rates for
new customers., which means you will be able to pay less interest over
the term of repayment.
Consolidate your debt with a home equity line: If you have equity in your home, a home equity line would also be an effective
way to consolidate your debt into a low interest and possibly tax-deductible
loan. However, you must be cautious when securing a loan against property.
When a debtor defaults on the equity line, the lender could repossess
the property. If the real estate market is strong, this could be an excellent option.
Defaulting on Debt
If you do not have anything of value, such as property or income, another
viable alternative is to stop paying your creditors. They can, of course,
attempt to collect the debt, but will have to abide by the Fair Debt Collection
Practices Act and other applicable state laws. They are not allowed to
engage in harassing or deceitful behavior to collect a debt. Doing so
is a violation of the law for which you can potentially seek monetary damages.
It is also possible for creditors to attempt to collect debt through a
court judgment. That said, if you only have exempt property, such as clothing,
furniture, Social Security, or public assistance benefits, you would be
considered judgment proof. Furthermore, a creditor cannot legally collect
a debtor’s property to fulfill a judgment, nor can a creditor sue
the debtor if it is impossible to collect the debt. If you do default
on your debt, however, keep in mind that it will remain on your credit
record for up to seven years.
Begin the Path Toward Obtaining Financial Relief Today!
At San Diego Legal Pros, our experienced bankruptcy attorneys will be able
to quickly assess if bankruptcy is right for you or if an alternative
option will better suit your needs and financial goals. We understand
that every situation is unique, which is why we take the time to develop
personalized solutions that can help the indebted escape financial distress.
To get started, all it takes is a quick phone call to our office.
Learn more about how we can assist you today and call us at (888) 875-9190
to schedule your free consultation with a knowledgeable member of our firm.