If you’re dealing with a ton of debt then you’re likely looking for the perfect way to handle it. At The Law Offices of Paul Y. Lee, we can help you find a solution but it’s important to understand: There is no perfect solution. There are a lot of options and there is help but the right way forward for you depends on your unique situation.
Secured versus unsecured debt
Secured debt is any debt that’s secured by an asset or property. For example, a mortgage is secured by your home while your car loan is secured by your car. An unsecured debt is all the other type of debt: credit cards, personal loans, etc. The right way forward for you will vary based on the type of debt you have.
The many debt relief options
At The Law Offices of Paul Y. Lee, we work with individuals who need relief from debt and ultimately decide that a bankruptcy filing is the best option. However, bankruptcy isn’t the only option. Your full list of debt relief options in California includes:
- Doing nothing. In some cases, creditors won’t do anything and they’ll often miss the deadline to file a lawsuit against you. In California, this deadline is four years from the date you incurred the debt. While this may sound like a great option, it can end up being more expensive and much more stressful than taking action.
- Consolidate your debt. In this case, you’d work with an agency who would work directly with your debtors to come up with payment plans. You have up to four years to pay off the entirety of the debt. In many cases, the agency you work with can reduce your interest rate. However, these services require a fee and this solution only works if you’re actually able to pay the debt.
- Debt settlement. With this option, you get your creditor to agree that you’ll pay a reduced amount and that they’ll consider the debt paid. The main advantage is that you can pay less, but, once again, this only works if you have a chunk of change to pay off the debts right away.
- Bankruptcy. At The Law Offices of Paul Y. Lee, we specialize in bankruptcies. Virtually any attorney you speak with will tell you that this is often the best option and the only one that actually gets rid of the debt. The main options are Chapter 7 and Chapter 13. With Chapter 7, you get a fresh start but not everyone is eligible and it doesn’t wipe out all debts. Chapter 13 is similar to a payment plan and has advantages of its own.
To learn more about the difference between Chapter 7 and Chapter 13 bankruptcies, and to get a free consultation, contact The Law Offices of Paul Y. Lee at 951-755-1000 today. We will review your situation and advise you on your options. Once you have more information, you’ll be able to make the most informed decision about how to move forward into a positive financial future.
