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San Diego Bankruptcy Blogs from September, 2018


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.

Consolidating Debt

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.

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