In today’s Irvine economy once you find yourself living month to month, or become a month behind on your debt, it is nearly impossible to get above water. If this is the case with you, Tran Bankruptcy Law can help with debt options to relieve the financial stress.
Here we will look at a number of debt options and explain why bankruptcy should be looked at as an attractive option.
The problem is this, if you are considering the different debt options as described below, it is probably already too late for those options to work. The debt options described are for people who foresee a change in their financial circumstances well before the problem arises.
Irvine credit counseling
Financial advisers provide credit counseling. They look at your income and expenses to come up with a budget that will help pay down your debt. To do this, the credit counseling will take a fee for their services. Credit counseling is a very useful tool for people who are going to, but have not yet, take out a mortgage loan, or student loan etc.
Debt negotiation assistance in Irvine
Another option is debt negotiation. This is when you hire an attorney or negotiator to help settle your debts. Settlements can come in the form of lump sum payments for less than the balance, lowered interest rates or smaller payments over time. The downside of debt negotiation is that you will normally have to pay a monthly fee for the service, it can be expensive and it is not guaranteed. Debt settlement or negotiation leads to lawsuits and the need to file bankruptcy in many cases.
Lastly, bankruptcy is a viable option for your debt. In some cases it should be the first option. There are two main types of consumer bankruptcies. Chapter 7 and Chapter 13. Chapter 7 is generally considered liquidation. However, most Chapter 7 cases end with the Debtor receiving a discharge of their debt without losing a dime.
The second type of Bankruptcy is Chapter 13. This is sometimes referred to as debt restructuring. Simply, Chapter 13 is a 3 or 5 year payment plan. The Court looks at your income and expenses. Whatever is left over at the end of the month is pledged to the payment plan. After the 3 or 5 years is up, any remaining debt is discharged.
The Irvine bankruptcy attorneys at Tran Bankruptcy Law can provide you will all the information necessary so that you can make an informed decision on your debt options.