Eliminate California Credit Card Debt
Bankruptcy filings in California dropped from 2010 to 2011, however this does not mean credit card debt problems in California have disappeared. It would be an understatement to say that California residents were hard hit by the recession and it has yet to revover. When the US housing bubble burst, some of its worst effects were felt in California , with many residents having to decide between paying their mortgage and paying living expenses such as food or credit card bills.
However, homeowners were not the only residents affected – construction jobs were lost and many consumers were forced to redirect their spending and focus on new budgets. High unemployment, new taxes and an increased dependence on credit cards, caused many California residents to feel trapped in a cycle of debt without an end.
To make matters worse, before they knew it Californians who became delinquent had the threat of legal action being taken against them further enhanced by the California legislature extended the statute of limitations on credit card debt collection actions.Therefore, credit card holders in debt in California are now open to lawsuits for a much longer period than many other states. Avoiding your creditors is no longer a solution that will work.
What Are My Options?
If you are one of the many people faced with credit card debt and are unable to pay the full amount, even over an extended period of time then, consolidation loans or debt management programs are simply not a viable option. Why? Because these programs condense multiple payments to your creditors into one monthly payment, but they also both require you to eventually repay the entire amount, not to mention the additional interest.
For those that have credit card debt beyond what they could ever repay in full, bankruptcy may seem like the only option. Know your options fully, because declaring bankruptcy should always be a last resort. Credit card debt is considered to be an unsecured debt. Unsecured because it is not attached to any collateral put up against the loan or debt. When you declare bankruptcy, generally all of your unsecured debts can be potentially discharged. Through this process, bankruptcy technically extinguishes all of your unsecured debt, however this debt forgiveness does not come cheap. Bankruptcy can follow you around for the rest of your life, adversely impacting your credit for 7 to 10 years. In addition, you may be required to disclose your filing in many of your future contracts or agreements.
Those with credit card debt in California should know filing bankruptcy is not the only way to stop creditor calls, escape lawsuits or avoid wage garnishment. Also you should be aware should that qualifying for bankruptcy has several requirements that many with debt do not meet. For those who do not meet these requirements but still cannot pay their entire debt, debt settlement reduction could be the answer. Debt settlement is a process in which a third party (in our case a California debt attorney) negotiates with your creditors, reducing the amount you pay to a fraction of what was originally demanded. Debt settlement negotiation enables you to eliminate your credit card and other unsecured debt by paying less than the full amount you originally owed however do so without the life altering effects of filing bankruptcy.
Stop Losing Sleep
In today’s economy, with the average debt in American households hovering at $54,000, and the national consumer debt sitting at $2.5 trillion, it is no wonder that many people suffer sleepless nights thinking about how far their next paycheck will spread. We understand that unexpected life events can happen resulting in debt you were not prepared for. We are also aware that asking for help is not an easy thing to do. Nonetheless, we believe that the resolution an attorney negotiated debt settlement affords is worth any initial discomfort.
Attorney Negotiated Debt Settlement May be the Right Option for You
The inability to pay back debt that has accrued in full is a reality for many Americans. Those who face this dilemma may feel that bankruptcy is their only option, but it’s not. Attorney negotiated debt settlement is an alternative to bankruptcy that affords similar debt relief with less severe consequences. Creditors understand that people get in debt beyond their means, and besides, it does not serve the creditors’ interest for you to file for bankruptcy. For this reason, settling debt for a reduced amount is a viable option for many debtors facing a debt they cannot handle.
Debt settlement may be the best option for you for several reasons. To begin with, debt settlement bides you time, allowing you to save money while the negotiations take place. In contrast, with a consolidation loan or debt management program, you are required to begin making payments according to a strict payment schedule right away, and you’ll incur penalty fees if you’re ever late.
Moreover, unlike the short term fix that a consolidated loan provides, with possible lower monthly payments but in the end a higher total amount paid, a debt settlement agreement can reduce the total amount paid and set you up for long term debt relief.
In addition to paying far less than the full amount, you typically avoid the severe credit score consequences of a bankruptcy filing and the related background check and other issues that come with bankruptcy.
For many in debt, losing sleep over debt is not the only interruption finances bring to your daily routine; there are also those pesky collection calls. Once you have an attorney representative, you can stop worrying each time the phone rings. Our attorneys will demand that all communications from your creditors be directed to our law firm, not just the negotiation down of your debt. In most instances, the debt settlement process is complete in as little as 6 months to 36 months maximum.
Unfortunately, because creditors have multiple debtors to deal with, they can afford to hire a staff of attorneys ready to pursue legal action, if need be. Unlike settlements attempted by other debt settlement companies, our attorney negotiated settlements are handled by attorneys. So if you are sued by your creditor, you will be defended aggressively by a skilled lawyer while the negotiations continue. Knowing you have a trusted and experienced attorney on your side will help you rest easier.
Asking for help is not giving up – it’s taking a step in the right direction. If you’re ready to move forward with your life, give us a call today for a free consultation.