Los Angeles, CA -- (SBWIRE) -- 09/14/2016 -- Times are still tough for many people. Every day, people face job loss, sudden illness, divorce or the death of a family member. Bankruptcy can help to get rid of debts and rebuild credit.
There are times when debt becomes overwhelming and it makes sense to get a fresh start, which is possible through the process of bankruptcy. Bankruptcy is a legal strategy to eliminate unsecured debt such as credit cards and medical bills. Bankruptcy also makes it possible to keep a home or car after falling behind on monthly payments. Individuals, business owners and corporations use bankruptcy to wipe out debt and to get reorganized and to stop creditors from calling.
The process of filing bankruptcy is complex work and the laws are very specific about who is eligible and who is not qualified to file. Los Angeles has specific rules for income limits and the number of people in a household that can qualify for filing. Lauren Rode is a bankruptcy lawyer with Consumer Action Law Group in Los Angeles. According to Ms. Rode: "An experienced attorney usually starts by understanding your current situation and then coming up with an overall strategy for filing bankruptcy, depending on your personal goals. A skilled attorney is capable of handling the complex work as well as offering advice on how the law can affect debtors personally."
The Difference Between Chapter 7 And 13 Bankruptcies
Most people have credit card debt and never need to file Chapter 7 bankruptcy. Filing Chapter 7 bankruptcy is a strategy for eliminating credit card debt when it gets to a point that it is no longer possible to make payments to the credit card company and also cover necessities such as rent, insurance, transportation, gas and groceries. Chapter 7 bankruptcy does not usually require a person to pay back their unsecured debts.
Chapter 13 bankruptcy gives a person a second chance to keep their home or car[s] after falling behind on monthly payments. Chapter 13 bankruptcy immediately stops a foreclosure or repossession if the bank is taking steps to sell the house or take back the car[s].
Benefits And Goals Of Chapter 7 And Chapter 13 Bankrupty
Chapter 7 bankruptcy is a very effective strategy to stop collections, eliminate credit cards and medical bills, eliminate old IRS tax debt, eliminate personal loans, wipe out judgments, stop wage garnishment, and immediately stop foreclosure or car repossessions.
Chapter 13 bankruptcy is also a very effective strategy to stop collections, eliminate credit cards and medical bills, eliminate old IRS tax debt, eliminate personal loans, wipe out judgments, stop wage garnishment, and immediately stop foreclosure or car repossessions. At the same time, Chapter 13 gives a person a second chance to catch up when they have fallen behind on mortgage or car payments to keep the house or car without fear of a foreclosure or repossession.
How To Qualify For Chapter 13
An experienced Los Angeles bankruptcy attorney can immediately advise on whether a person can file chapter 7 or chapter 13 bankruptcy. Qualifying for bankruptcy depends on the specific debt and the income and assets that needed to protect.
A skilled bankruptcy lawyer also has the ability to handle all legal matters and represent the client at mandatory meetings before the bankruptcy trustee and the judge. It is important to find a lawyer that has a proven track record filing Chapter 13 cases, because those cases can last more than 5 years from the start to the finish. Many lawyers file Chapter 7 cases, but the Chapter 13 cases require more time and dedication.
Getting Rid Of Credit Card Debts And Medical Debts
Credit card and medical debt can be eliminated by filing either chapter 7 or chapter 13 bankruptcy. Income and the ability to repay debts is the main difference between Chapter 7 and 13 filings. A person with higher/disposable income may have to file Chapter 13 bankruptcy and may have to repay a portion of any unsecured debt instead of filing Chapter 7 and eliminating all of the debt completely.
Stopping Foreclosure And Getting Rid Of 2nd Or 3rd Mortgages And Home Equity Loans
When a person files Chapter 13 bankruptcy, a foreclosure is automatically stopped. In addition, a second or a third mortgage can be stripped or eliminated if the loan is not secured by any equity in the house. In simple terms, when a borrower is underwater on the first mortgage, the 2nd or 3rd can be eliminated. Chapter 7 bankruptcy only offers a temporary stay of foreclosure and there is not an option to strip any liens or repay missed mortgage payments under Chapter 7.
Ask for Free Legal Advice Before Filing Bankruptcy
Consumer Action Law Group offers free legal evaluation and advice for anyone who lives in California and is interest in filing bankruptcy. The first consultation is free. On the first call, the bankruptcy attorneys at the firm will let debtors know if they qualify to file bankruptcy. Anyone facing serious problems such as foreclosure, wage garnishments, credit card debt over $10,000, or defending against a lawsuit should take action today and call one of the lawyers at Consumer Action Law Group and discuss their situation with their lawyers.
For more information about filing bankruptcy visit http://ConsumerActionLawGroup.com or call 818-254-8413 to speak with their attorneys.
About Consumer Action Law Group
Consumer Action Law Group is a law firm dedicated to help consumers in consumer-related matters or consumers that experienced fraud and scam. Attorneys in the team are knowledgeable and experienced in the areas of eliminating debt, mortgages fraud, auto fraud, and foreclosures. They have direct experience in consumer fraud matters and helping consumers who are facing financial crisis, foreclosure, issues with employers, and problems with auto dealers.
For Media Inquiries
Contact Person: Lauren Rode, Esq.
Telephone: 818-254-8413
Email: Lauren@consumeractionlawgroup.com
Website: http://consumeractionlawgroup.com