Living in Southern California is expensive and it’s easy to overextend yourself financially while just trying to get by. While you work hard for your income, the cost of living continues to skyrocket. Creditors understand this and are all too eager to offer you a loan, in the form of a mortgage or credit card. Unfortunately, these loans come with strings attached. Interest rates may start out small but can increase rapidly for missing even a single payment. For this reason, it’s easy for even the most financially safe person to find themselves struggling under a mountain of debt.
If you fail to make debt payments in a timely fashion, your creditors have many options on which to collect. By obtaining a court judgment, they can place liens on your property, seize your bank accounts, garnish your wages, or more.
In California, creditors can garnish up to 25 percent of your income. When you’re already struggling to pay your bills, losing a quarter of your paycheck will only make your situation worse. In addition, you can also be subject to harassing phone calls and visits from debt collectors, at home or at your place of work. But remember you do have rights and options. By contacting the attorneys at McFarlin LLP, you can find out how to break free from the burden of debt. Call them at (888) 728-0044 for a free consultation.
Before creditors can get their hands on your property, bank accounts, or wages, it’s a good idea to consider filing for bankruptcy. Bankruptcy can protect you and your family’s assets and future, and help you make a clean start. These are the three primary types of bankruptcy that can be filed:
- Chapter 7 – Under Chapter 7 bankruptcy, creditors must stop all collection activity, including garnishments, calls, bank levies, and foreclosures. In most cases, this type of bankruptcy allows you to keep all of your assets, such as your car and house. However, there are certain types of debt that can’t be forgiven. Things like unpaid taxes, child support, and student loans can’t be dismissed. This is why it’s a good idea to consult a knowledgeable attorney when considering Chapter 7. We can help you make a clean start and move on with your life.
- Chapter 11 – This type of bankruptcy is primarily used by large businesses and corporations who are in dire financial trouble. It freezes a company’s debt while the company reorganizes and allows the owners of the business to remain in charge of its operation. This is a rather complicated form of bankruptcy so an attorney’s involvement is essential.
- Chapter 13 – Chapter 13 is a court-approved plan worked out between debtors and creditors that allows people to protect their assets while gradually repaying what they owe. Often times, a creditor will forgive part of the debt in order to receive some payment rather than none. Chapter 13 is an effective method for stopping foreclosure should you run into financial difficulties.
As you can see, there are several options if you find yourself drowning under debt. Life is unpredictable and you never know when a layoff or severe illness will make it difficult to pay your bills. If you find yourself in such an unfortunate situation, please call the Orange County bankruptcy attorneys at McFarlin LLP. Dial (888) 728-0044 for a free consultation.