Grinning and bearing it is not your only option when you are facing a debt crisis. In fact, it's very rarely even your best option. Working with a bankruptcy professional, you can find out both about bankruptcy options as well as other legal and financial remedies that could help you create a more stable financial future.
For individuals who are dealing with serious debt issues, numerous options exist. You might seek credit counseling through a court-approved program. Unlike programs that charge you a large commission to manage debt payments, this type of credit counseling walks you through solid financial management information and helps you identify income and expenses. Usually, you make a budget that might be able to help you resolve some debt issues.
A budget isn't always enough to solve the problem, though, and you might need to take other legal steps. You might consider a short sale of property if you can't make ends meet with your current mortgage and would like to move into a different home or rental situation. You might also consider bankruptcy.
Individuals can usually file for either Chapter 7 or Chapter 13 bankruptcy. Chapter 7 is a liquidation, but that doesn't mean you lose your home or car. The property you are able to keep depends on your income, expenses and value of the property itself. Chapter 13 is a reorganization, which usually lets you keep your property but requires that you work out a repayment plan. Chapter 13 plans typically involve paying less than you owe on nonpriority debt such as credit card accounts.
Bankruptcy is not a simple matter. It's also not as frightening as many people believe. If you are dealing with debt issues in Los Angeles, reach out to a bankruptcy attorney to learn more about your options.
Source: FindLaw, "Chapter 7 and Options to Bankruptcy," accessed Sep. 16, 2016