Bird & Van Dyke, Inc. - A Professional Law Corporation
Contact us for a Free Initial Consultation | Se Habla EspaƱol
Stockton 209-390-8877
Tracy 209-800-8962

California borrowers have choices for debt relief

For many in California, financial strain in recent years has led to difficulties in making ends meet. Some have had to rely on credit cards to purchase necessities such as groceries and utility bills. For many, this has led to a spiraling debt scenario from which it is difficult to emerge. While financial trouble can be very stressful, it is important to remember that California consumers have choices for debt relief.

One option is an aggressive attempt at debt settlement. This involves negotiating the terms of existing debt to allow for that obligation to be discharged for one lump payment that is lower than the total owed. In some cases, lenders will agree to accept a reduced amount versus having to pursue a borrower through collections or legal action. It is essential that the borrower get the full terms in writing before making any debt settlement payment.

Another option lies in filing for Chapter 13 bankruptcy. This form of bankruptcy allows borrowers to retain their home and other assets while repaying debts through a payment plan. The repayment structure is approved by the court. This is a good option for individuals who have experienced a temporary financial setback but who feel confident that they can repay their debts given a longer timeline.

Chapter 7 bankruptcy offers yet another debt relief solution. Often referred to as a liquidation bankruptcy, Chapter 7 allows a debtor to sell off certain assets to repay creditors. It also can lead to the discharge of many forms of consumer debt such as old credit card or medical bills. Chapter 7 is often seen as the fastest path to permanent debt relief.

When considering one's options, it is important to research the pros and cons of each choice before deciding on a solution. While financial turmoil is certainly unsettling, there are ways of emerging from beneath a mountain of debt with a chance to start anew. These and other choices for debt relief can give hope to beleaguered California borrowers when it is needed most.

Source: Fox Business, "Choices for Debt Relief," Fred O. Williams, Feb. 8, 2013

No Comments

Leave a comment
Comment Information
Email Us Today

Contact Bird & Van Dyke

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Review Us

Stockton Office
2111 West March Lane, Suite B 300
Stockton, CA 95207

Phone: 209-390-8877
Fax: 209-478-9954
Stockton Law Office Map

Tracy Office
1138 Parker Avenue, Unit B
Tracy, CA 95376

Phone: 209-800-8962
Fax: 209-478-9954
Tracy Law Office Map