Individuals turn to Los Angeles bankruptcy attorneys for relief as COVID-19 pandemic leaves behind a trail of unemployment and debt.
Los Angeles bankruptcy attorneys are fielding calls from individuals devastated by the health and financial effects of the virus. According to Matt Faler, a bankruptcy attorney in Los Angeles with Consumer Action Law Group, “We are talking to people every day that have been financially wiped out by the virus. People had a lot of debt before the pandemic, now they are in a hole too deep and they need a way out.”
Millions of people left work for weeks in California and many other states, and the daily expenses continued; mortgages and car payments, groceries and health insurance, medical bills and utilities. According to Attorney Faler, “Most people with savings didn’t have enough to get through several weeks without a paycheck during a pandemic, credit card debt shot up to record levels.” Now individuals are turning to bankruptcy in record levels to eliminate their debt and to get back on their feet financially.
When to file Chapter 7 bankruptcy
Chapter 7 is the most effective way to immediately wipe out credit card debt, medical bills, old IRS debt, and debt related to lawsuits such as judgments or liens. As a general rule, Chapter 7 is best when a person is unable to get rid of existing debt within 2-3 years. Individuals with too much income or home equity may not qualify for Chapter 7 bankruptcy, depending on their expenses and any other people in the household. For more in-depth questions about qualifying for bankruptcy, it is best to call an experienced Los Angeles chapter 7 bankruptcy attorney.
When to file Chapter 13 bankruptcy
Chapter 13 is the most effective way to catch up when a person falls behind on mortgage payments or car payments. Most individuals who were laid off from a job could not keep up with all their bills and expenses. Filing Chapter 13 prevents a foreclosure or car repossession, and also immediately wipe out credit card debt, medical bills, old IRS debt, and debt related to lawsuits such as judgments or liens. As a general rule, Chapter 13 is best when a person has fallen behind on mortgage and or car payments and is unable to get rid of existing debt within 2-3 years. Individuals with very high mortgage and credit card debt may either qualify for Chapter 13 bankruptcy or chapter 11, depending on their debts owed. For more in-depth questions about qualifying for bankruptcy, it is best to call experienced Los Angeles chapter 13 bankruptcy attorneys.
Why file bankruptcy now?
Bankruptcy is the most effective way to get rid of excessive debt. There are myths surrounding bankruptcy perpetuated by banks and credit card companies; false rumors that bankruptcy ruins a person’s credit for 7 years when it actually can improve a person’s overall credit profile. Bankruptcy remains on a person’s credit report for 7 years but usually does not have a substantially negative impact after 1-2 years from the filing date when a person rebuilds their credit profile without the massive debts owed prior to filing.
For questions about how to get rid of debt, how to qualify for bankruptcy, and how much it costs to hire an attorney, it’s best to call and talk to an experienced lawyer immediately, before collection calls start to add stress and anxiety. The attorneys at Consumer Action Law Group offer FREE ADVICE to any person that wants discuss their options either by calling 818-254-8413 or by emailing [email protected]
About Consumer Action Law Group
Consumer Action Law Group is a law firm dedicated to helping individuals in consumer-related matters such as fraud and scams by car dealers, credit card companies, and lenders. Attorneys on the team are knowledgeable and experienced in the areas of eliminating debt, auto fraud, lemon cars, recovering surplus funds, as well as home foreclosures.
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Contact Person: Chuck Panzarella
Email: [email protected]