Debt Relief Options
There are three main debt options in Costa Mesa. Credit Counseling, Debt Negotiation and Bankruptcy.
Financial advisers and credit counseling as a debt option in Costa Mesa
In Costa Mesa, there are a number of Credit Counseling firms and financial advisers that can help you with your budget and loans. People use Credit counseling when they are planning on taking out a large loan. Examples of this are people who intend to buy a home, go to school or start a business. The credit counselor can help you determine whether the loan fits into your monthly budget. Although, Debtors can talk to credit counselors to help manage their debt, it is usually too late. A person struggling financially, in most cases has done everything practical to reduce their expenses in attempts to get out of debt.
Debt negotiation and settlement firms and attorneys in Costa Mesa
Many firms in Costa Mesa provide debt negotiation and settlement as a service for people interested in debt options. These firms specialize in negotiating with your creditors. They try to secure a lower principal, lump sum settlements, lower interest rates, or other creative ways to help you get rid of your debt. The draw back with debt settlement is that it wont help debtors that don’t have the funds to make payments monthly payments, or pay a lump sum settlement. Debt settlement works best for people who have one nagging red mark on their credit report that they need to get rid of. For example, settling an old medical bill or utility bill that you neglected. A debt settlement professional can help negotiate that debt so that you can pay it off and rebuild your credit.
Chapter 7 or 13 bankruptcy in Costa Mesa
People refer to Chapter 7 as liquidation. The court looks at your property and assets to determine whether you have anything worth liquidating. In many cases, a Debtor receives a bankruptcy discharge without losing any property or money.
Chapter 13 is a three to five year payment plan in which the court looks at your income and expenses. Whatever is left over at the end of the month is the plan payment that you make. It is unlike debt settlement in that Creditors must cease all collection actions while in bankruptcy. This includes giving you negative marks on your credit report.
The Costa Mesa bankruptcy attorneys at Tran Bankruptcy Law can provide you with all the information necessary so that you can make an informed decision.