If you are unable to pay your mortgage and credit card bills, bankruptcy may be an effective option to regain financial stability. Given the current financial crisis and housing market meltdown, you creditors may be willing to modify your mortgage or reduce your minimum monthly payments on your credit cards. However, if your creditors are unwilling to work with you, filing for bankruptcy under Chapter 7 or Chapter 11 may be the only way to avoid foreclosure on your home and further financial difficulty. At Chang & Diamond, our San Diego debt relief attorneys can evaluate your current financial situation and discuss the options available to you.
How Filing for Chapter 7 or Chapter 11 Bankruptcy Can Help You
Under the current bankruptcy laws, there is still a sufficient and generous homestead exemption available in California. Depending on your situation, you may be able to declare bankruptcy without losing your home. If you meet the income requirements for filing under Chapter 7, what you owe on credit cards and other unsecured debt, should be wiped clean. However, in order to do so, the court may need to seize certain non-essential property items and liquidate them to pay off creditors. Even so, if you can continue making monthly mortgage payments, you can keep your home.
Since Chapter 13 is essentially a reorganization of your debt, as long as your creditors agree to your proposed repayment plan, you should be able to avoid foreclosure. While Chapter 13 is more expensive in that it requires you to repay 80% to 100% of what you owe over a 3-5 year period, is also allows homeowners more bargaining room to keep their homes. Working with financial advisors and accountants, our attorneys can create a repayment plan that will provide debt relief while allowing you to avoid foreclosure.
Bankruptcy, Debt Relief and a Fresh Start
Despite dramatic changes to the bankruptcy laws in 2005, it is still possible to get a fresh start through bankruptcy. While it will take time to fully restore your credit rating, you can begin re-establishing your credit immediately after declaring bankruptcy. Our attorneys explain the steps you need to take and what you can do to avoid overspending with credit cards. We can also help you modify spending habits that lead to ever-increasing debt.
Contact the San Diego Debt Relief Attorneys at Chang & Diamond
Put an end to calls from debt collectors and harassing letters from your bank – contact debt relief options attorneys at the law office of Chang & Diamond today to learn how we can help you regain your financial footing.
Free Consultations Available