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Is Bankruptcy the Right Choice?

Woodland Hills Lawyer

Educating People About Their Choices

When people start thinking about bankruptcy, they usually have significant debts. They may be unable to make minimum payments on their credit cards. They are probably receiving harassing telephone calls and letters from creditors. They may have had their wages garnished, In short, they are very stressed and vulnerable. They wonder whether bankruptcy is the right choice. Call a Los Angeles-area lawyer at the Leventhal Law Group, P.C. at 818-347-5800 for a free initial consultation.

Explaining Your Options

At the Leventhal Law Group, P.C., in Woodland Hills, California, I advise people about their options when they are facing overwhelming debt. I know that many individuals are reluctant to file bankruptcy because of the perceived stigma and shame attached to this approach to debt management. This makes them susceptible to a variety of debt relief schemes that can cost them a lot of money and may leave them in worse financial shape. After meeting with me, they understand the choices available to them, including negotiating with creditors for debt settlement.

Things to Look at When Considering Bankruptcy

Although each case is different and people thinking about bankruptcy should speak with a knowledgeable bankruptcy lawyer, I have listed some basic guidelines below that may indicate that it’s time to consider bankruptcy:

  • Are you behind or making only minimum payments on your credit cards?
  • Are you taking cash advances to pay your bills?
  • Do you owe more than $10,000 in unsecured debt?
  • Have your wages been garnished?
  • Are collection agencies calling you at home or work?
  • Are their lawsuits and or judgments pending against you?
  • Do you have large medical bills not covered by insurance?
  • Are you behind on your property or income tax payments?

If you answered yes to more than one of these questions, filing bankruptcy may be your best option.

What About Loan Modification?

Many companies have sprung up advertising loan modification. They purport to help consumers obtain better interest rates or extend the terms of a mortgage. There are several reasons not to do this, including a significant lowering of your credit rating. Moreover, consumers could do this by themselves — they do not need to pay for the service. I believe that many of these loan modification services are preying on people who are desperate and hope to avoid bankruptcy. The bottom line: Most consumers can modify a loan by themselves. It is now against state law for any company or a lawyer to accept money in advance for loan modification services. Contact the Leventhal Law Group, P.C.. Call 818-347-5800 to find out how an attorney can help you when your debt has become overwhelming. We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.