Overcoming Serious Debt Challenges
Are you getting harassing phone calls and threatening letters from debt collectors because you have not been able to make your credit card payments, or pay medical or doctor bills? Are you concerned about what will happen if you cannot catch up with these debts?
At the Law Office of Jeff D. Hoffman in Oakland, we help clients explore and pursue their full range of bankruptcy and debt reduction options for dealing with unsecured debts. Contact us to schedule a free consultation with California attorney Jeff D. Hoffman.
Getting Debt Relief Through Bankruptcy
Credit card debts and medical bills are unsecured debts, which means they are not backed by a particular asset, such as a home or car, that the creditor can seize and sell off if you do not pay. People who default on these debts typically face lawsuits, wage garnishments and serious harassment from creditors.
- In Chapter 7 bankruptcy, credit card debts, doctor and medical bills, and most other types of unsecured debts can be completely eliminated (discharged). Once you file, debt collection efforts will stop immediately, and you should get a final discharge within a few months.
- In Chapter 13 bankruptcy, these types of debts can be reduced by up to 99% depending on your monthly income and your reasonable living expenses, which include home and car loans.
There are advantages and disadvantages to each of these types of bankruptcy. Jeff will go over your options with you to determine the best solution for your specific needs.
Loan Modifications
Even if you think you want a home loan modification, a Chapter 13 Bankruptcy is often a better choice. For one thing, it is nowhere near as risky as a loan modification. Also, any junior mortgage that is completely underwater can be "stripped" in a Chapter 13 bankruptcy, meaning that you will pay little or nothing for it during bankruptcy and that lien will be removed once you have completed your bankruptcy plan. Collecting on debts is expensive, so many creditors are willing to work with borrowers, especially when a knowledgeable lawyer is able to identify and propose an agreeable solution. For credit card debt, we negotiate to lower your debt significantly from what you now owe.
We are devoted to helping you get debt relief and rebuild your credit. If you are concerned about credit card debts, doctor and medical bills, and other unsecured debts, don't hesitate to contact us.
