Los Angeles Bankruptcy & Debt Settlement Lawyers
Bankruptcy helps to alleviate debt and stop foreclosure
Consumer debt is a major problem caused and compounded by bad loans and the housing market crash, unexpected expenses and medical bills, layoffs and high unemployment, divorce and even a death in the family. At Advocate Legal, we understand that the stress of mounting debt can feel overwhelming, especially coupled with such life-changing events. We offer compassionate, steadfast representation to help you through your difficult time and obtain debt or foreclosure relief. We help homeowners and borrowers understand their rights, obligations and possible remedies. From our initial evaluation, we help you determine whether to pursue bankruptcy, debt settlement, credit repair or litigation.
Consumer bankruptcy provides the debt relief that individuals and families need when they have consumer debts and need a plan to repay, to stop foreclosure, or to wipe the slate clean. Consumer debt may include credit card debt, car loans or a home mortgage. Our debt settlement attorneys help consumer debtors with their two main bankruptcy options:
- Chapter 7 — A Chapter 7 bankruptcy is designed for debtors having financial difficulty who cannot pay their existing unsecured debt. Although it will temporarily stop a foreclosure sale, it is not a long-term solution for dealing with a first-lien mortgage debt because these loans are secured by the debtor’s real property. Chapter 7 is the best solution for debtors seeking relief from unsecured debt such as credit cards.
- Chapter 13 — A Chapter 13 bankruptcy is a reorganization of debt that requires debtors to pay back their creditors. A Chapter 13 plan is agreed to and completed under the supervision of the court. It is an effective tool for paying arrears when debtors get behind on their mortgage and can’t get a modification from their servicer. A Chapter 13 bankruptcy may potentially offer some relief from second liens if borrowers owe more than their house is worth (referred to as “underwater”).
Determining whether bankruptcy is the best option and which form of bankruptcy to pursue is best approached with an experienced attorney who will act as your advocate rather than selling you on something. At Advocate Legal, our practical, experienced attorneys will help you choose the best debt and foreclosure relief option and make the process as simple as possible. In addition to bankruptcy, our attorneys may suggest other beneficial choices such as:
- Debt settlement — This may include negotiating with your lender for a lower payment or interest rate, negotiating a lower principal balance for a second deed of trust, or wiping out a second deed of trust that has become unsecured after a decrease in property value. At Advocate Legal, we may also help you obtain real property financing to refinance and repay the original mortgage, depending on the circumstances.
- Credit repair — By filing for bankruptcy, modifying loans and settling debt, consumers can stop late payments and begin to rebuild their credit over time. Because lender errors can also harm credit, our attorneys help borrowers combat inaccuracies in credit reports and rebuild their credit scores.
Contact bankruptcy attorneys in Los Angeles County who care about providing the help you need
At Advocate Legal, our team is dedicated to helping clients with bankruptcy and debt and foreclosure relief. For strategic, tailored service, contact our office online or call 800.846.0390 FREE today to schedule a case evaluation.