If you have a lot of debt, you’re probably looking for the best approach to deal with it. We can help you discover a solution at The Law Offices of Paul Y. Lee, but it’s vital to remember that no solution is perfect. There are many options and resources available, but the best course of action for you will be determined by your specific circumstances. Keep reading to learn more and then contact us at 951-755-1000 for a bankruptcy consultation.
Secured and unsecured debt should be handled differently
Any debt that is secured by an asset or property is referred to as secured debt. A mortgage, for example, is secured by your home, and a car loan is secured by your vehicle. Unsecured debt includes all other types of debt, such as credit cards and personal loans. The best course of action for you depends depend on the type of debt you have.
There are numerous debt reduction solutions
At The Law Offices of Paul Y. Lee, we assist with people who are in debt and have decided that filing for bankruptcy is the best option. Bankruptcy isn’t the only option, though. In California, you have the following debt relief options:
Not doing anything. Creditors will sometimes do nothing and will often miss the deadline to initiate a lawsuit against you. This deadline is four years from the day you incurred the debt in California. While this may appear to be a good alternative, it might actually be more costly and unpleasant than taking action.
Debt consolidation. This can be a great way to get out of debt. In this situation, you’d collaborate with a collection agency that would negotiate payment schedules directly with your creditors. You have up to four years to pay off your loan completely. In many circumstances, the agency with which you work can help you lower your interest rate. However, these services come at a cost, and this approach is only effective if you are able to pay off your debt.
Debt settlement. With this option, you persuade your creditor to accept a smaller payment in exchange for the debt being considered paid. The biggest benefit is that you can pay less, but this only works if you have a large sum of money to pay off your debts immediately.
Bankruptcy. Bankruptcies are our specialty at The Law Offices of Paul Y. Lee. Almost any attorney you speak with will tell you that this is frequently the best and only choice for getting rid of debt. Chapters 7 and 13 are the most common choices. You get a fresh start with Chapter 7, but it’s not for everyone, and it doesn’t wipe off all debts. Chapter 13 is similar to a payment plan, but it has its own set of benefits.
Contact The Law Offices of Paul Y. Lee at 951-755-1000 now to learn more about the differences between Chapter 7 and Chapter 13 bankruptcy and to schedule a free consultation. We will assess your situation and provide you with recommendations. You’ll be able to make the best decision possible on how to go forward into a prosperous financial future after you have more knowledge.
