The Pros and Cons of Bankruptcy - Is Bankruptcy Right For You?

	The Pros and Cons of Bankruptcy - Is Bankruptcy Right For You? Pros, Cons of Bankruptcy & Debt Relief Counselor. San Diego Debt Relief Deals with the best way to deal with credit card debt relief. What is the best way to get out of debt? Pros and cons of credit card debt relief agencies compared to Chapter 7 and Chapter 13 bankruptcy. Bankruptcy & Credit Card Counselors What Option is Best For You Chapter 7 Debt Relief \| Debt Relief San Diego \| Debt Relief attorney. San Diego Debt Relief Attorney David A. Casey Free Parking and Next To Two Major Freeways. No need to go downtown San Diego for a bankruptcy attorney! My office is just minutes away. (619) 447-6780 Attorney for over 21 years Free Consultation with a Chapter 7 Attorney There are 19 Cities within 12 miles of my Bankruptcy Law Office Law office location: El Cajon, California Map to El Cajon Bankruptcy Law office - Click here We are a debt relief agency. We help people file for relief under the Bankruptcy Code. San Diego Debt Relief \| Debt Relief Attorney \| San Diego Bankruptcy Attorney If you have not read part one, you are missing valuable information so please go back and read it. It is worth reading. It also lists 21 different items that may be an indicator as to why you should file bankruptcy. What Is The Best Way to Get Credit Card Debt Relief By far the best way to deal with a credit card company is to file Chapter 13. Why? Because they are no longer in charge and they have very little if any say in the process. The debt is called "unsecured" debt so they get paid last. Of course, most credit card debt is unsecured unless the creditor has collateral such as an appliance. Be sure to check the agreement. If you use a debt settlement agency they still hold all of the cards so to speak. Keep in mind that if the creditor does forgive the debt they most likely will issue a 1099. This means you will owe taxes as income. So understand the difference between debt relief agencies and bankruptcy. Debt Relief with Chapter 7 Bankruptcy For most individuals they consider a Chapter 7 bankruptcy a last resort. They wait until their situation has gotten way out of hand. First they try a credit counseling agency to help them. Unfortunately, there are far too many of these agencies that really do not help you in the end. After you have spent hundreds, maybe thousands of dollars, you find that your situation hasn't changed and that your funds may have not been used to pay down your debts. But if you are considering using a credit counseling agency or debt relief agency, be sure of what you are getting into. Bankruptcy is certainly an option that should not be your last resort. Pros, Cons of Bankruptcy & Debt Relief Counselor. San Diego Debt Relief.
Most people think that bankruptcy damages your credit for many years. However, participating in a debt counseling plan may affect your credit even more negatively than a bankruptcy. In fact, filing bankruptcy for many actually improves their credit scores in a very short period since most people have all of their unsecured debts eliminated. Your credit score is primarily based on your last two years of debts and your payment history within the last few months. In a Chapter 7 bankruptcy, a debtor liquidates non-exempt assets. The good news is that in California most people can keep most of their assets including their retirement, 401Ks, cars, and your home if you are current in your mortgage payment. With our pre-bankruptcy review you will see if there is anything you can’t keep. Many people keep their ATVs, boats, Harleys and many other items. (Click here to see the California exemptions). In many cases, Chapter 7 bankruptcy is the fastest and in almost all the cases is the cheapest credit card debt relief option available to the debtor. Debt Relief with Chapter 13 Bankruptcy Chapter 13 bankruptcy can offer relief that no credit counselor can offer. A second mortgage can be "stripped" when it is wholly unsecured. You still have to pay back at least a portion of the debt with a Chapter 13 payment plan. You may have to turn over your disposable income to the courts for up to 5 years before you are finally relieved of your obligation to pay back the debt. This is widely used as a debt relief solution for secured debts like mortgages and automobiles, not credit cards. One should always speak to a licensed attorney in your state to determine whether a Chapter 13 bankruptcy is a suitable option for them. Credit Card Balance Transfers This can be an option for some. First, you must have a credit card in which you have a high enough credit limit for this to work. Next the interest rate needs to be a fixed interest rate and not a teaser one. This is what use to be called “robbing Peter to pay Paul". This only works if you can reduce your payment amount along with your interest rate and keep current on your payments. However, one major problem is that the credit card company can change the repayment rate at any time. One large bank (hmmmm....CH...) went from 2% to 5% of the unpaid balance for repayment. They got people to switch balances over to them only to hit them very hard with a very high payment rate they didn’t bargain for. I tell people that I should send CH... a thank you card each week because of the numerous clients who have had to file bankruptcy because of their policies. I would not recommend using the transfer of balances if your employment is not stable or you have over $20,000 in credit card debts. I know some might disagree with me but based on what I have witnessed, I feel strongly about this, but it is up to you to decide. Hopefully, you'll find this information helpful to reaching that goal. Using your Home Equity for Credit Card Debt Relief A home equity loan is NEVER an appropriate option for consumers with high credit card debt. The reason is because you are taking unsecured debts and making them secured. I want to stress this again, NEVER do this. Most of the time credit cards debt are completely discharged. You would not want to use your equity in your home by paying off unsecured debts. In California, you could can have $100,000 worth of home equity and keep it under certain exemptions. Equity should be looked at as savings over the payment of credit cards. THERE ARE MANY PEOPLE WHO BELIEVE IT IS MORALLY WRONG TO FILE BANKRUPTCY Of course, we all have opinions. Here are my thoughts on it. If you cannot maintain a reasonable standard of living for your loved ones because of unemployment, medical problems and expenses, unforeseen loss of income, reduction of pay by your employer, plus many other circumstances, then bankruptcy can offer relief. It is a way to get a new start. Is there abuse of the bankruptcy system? I am sure that there are some who "slip" through and got their debt discharged. But for most, they are people like you and me who have had to face unfortunate circumstances. If the credit card companies and other lenders were willing to work with you like they did back in the day, that would be one thing. Now they are unwilling to bend or help for even a short period of time. Instead they harass you to try to get paid. They may even call your place of employment. What you are doing by filing bankruptcy is to protect yourself from the creditors whose only goal is get as much money out of you before you have nothing left. Most people don’t file bankruptcy to abuse the system. They file bankruptcy out of necessity. Withdrawing your IRA or Retirement Account to Pay Off Credit Card Debt In California, MOST if not ALL of your retirement may be protected from the creditors. I would NEVER with-draw any of your retirement funds. This is money you will need later on in life. Don’t use it to pay off debts of any kind. Unfortunately, some people feel that this is their only option. Remember, if you file bankruptcy your funds are protected, so don't waste your hard earned money you will need when you get older. If you do withdraw your funds, you will have to pay taxes and penalties on an early distribution. You may be lucky to get 60% of what you took out after taxes. I strongly suggest not doing this. Next Question I get asked frequently: How about borrowing against a 401(k) as a credit card debt relief solution? This does NOT make any sense. First, we have the same tax problem as mentioned above, but would you want to secure a loan to pay off a debt that you can make go away. It is much like borrowing against an IRA, this debt relief solution may not make sense for consumers. Keep your hard earned money for the time when you will really need it. It might seem like a long time before you retire but you'll need the funds for when you get older. I hope this debt relief article provides you with what I consider a positive way to look at your options. When you come into my office for debt relief I will treat you not only with respect but as someone who needs assistance. I have been an attorney for over 21 years and I can tell you most people never plan to file bankruptcy. For some this is their second bankruptcy and they never thought they would be doing it a second time. Life can give us a lot of twists and turns any many challenges. Getting into debt is very easy to get into and very difficult to recover from. That is why our founding fathers made sure this was part of our constitution. Author: Attorney David A. Casey. San Diego debt relief options. Compare chapter 7 & chapter 13 bankruptcies debt services. Some debt counseling can create a tax liability. Find the best way to get ride debts San Diego County - Let the Chapter 7 Bankruptcy Laws Work For You! Chapter 7 Bankruptcy San Diego County, CA, Free Chapter 7 Consultation San Diego County Attorney Casey's philosophy is to treat every client with respect as we would expect to be treated if there was a change of events that affected our lives. The purpose of chapter 7 or 13 bankruptcy is to seek relief from your financial hardship, stop foreclosures, and put a stop to unreasonable creditors pursuant to the bankruptcy laws. San Diego bankruptcy Attorneys for debt relief, Chapter 7, Chapter 13, Debt Bankruptcy Attorneys. Bankruptcy Attorneys serving El Cajon and San Diego County. Common Questions and Answers About Bankruptcy - Click here San Diego Debt Relief \| Debt Relief Attorney \| San Diego Bankruptcy Attorney
Information about Bankruptcy Bankruptcy Or Debt Counselor. What is Best Debt Relief & Why (619) 447-6780 Bankruptcy Chapter 7 Attorneys.com For over 21 plus years I have given personal service to my clients in San Diego County, San Diego, and clients throughout San Diego County. When you come into my law office you will not be treated like a number. We are honest and upfront about bankruptcy fees and costs. The bankruptcy the court has to approve of the fees as being reasonable. Pre-bankruptcy payment plans are available. You'll get personal bankruptcy debt relief with my professional legal representation. We also provide a pre-bankruptcy service which costs are put towards your bankruptcy case should you decide to file. This helps to reduce potential bankruptcy problems and to lower the risk of having your case discharged. With the pre-bankruptcy review you'll know what debt relief you are entitled to. I personally will discuss your bankruptcy case with you before filing your petition. As a bankruptcy attorney I am here to get you the best debt relief available to you based on the facts you provide my office. Chapter 7 San Diego East County Bankruptcy Attorney, Chapter 7 & 13 Lawyer Assets that are not exempt you may not be able to keep We are a debt relief agency. We help people file for relief under the Bankruptcy Code. The Pros and Cons of Bankruptcy - Is Bankruptcy Right For You? San Diego debt relief bankruptcy attorney. Read if Bankruptcy is your best option. Over 21 years attorney Casey represented clients in San Diego metro & San Diego County
No matter if your bankruptcy needs are simple or very complex, my office is here to assist you. The positive benefits of the bankruptcy laws can help. Bankruptcy is like taking some medication for an infection. If you don't take it things will get worse. You're welcome to contact other attorneys and to find one that you are comfortable with. Don't just retain an attorney on fees. Check what you are getting. Don't be another number. This web site is intended for general information only and does make any inference that this constitutes a retainer for my services or that I represent you. This communication is an “Advertisement” as defined by the California Rules of Professional Conduct and California Business and Professions Code. No communication herein shall create an attorney-client relationship unless a separate retainer agreement is signed by an attorney and client. This material is for informational purposes only and not intended to provide legal counsel or legal advice to you. The Bankruptcy and Family Law Office of David A Casey represents individuals debtors and businesses seeking Bankruptcy relief. Bankruptcy Services for San Diego County, San Diego, Lakeside, La Mesa, Lemon Grove, Santee, San Diego California, Mission Valley, with Chapter 7 and Chapter 13 Bankruptcy relief for debtor. Pros, Cons of Bankruptcy & Debt Relief Counselor. Get Debt Relief Help.