Debt Crisis? A Free Attorney Consultation Can't Hurt!

June 22, 2009
Written by: Nikki Hashemi


Having a lot of debt can be very scary. At first, you try your best to continue making your payments on time, and even paying more than the minimum payment. Then, as you see that your creditors are cutting your credit limits, and increasing your interest rates, your monthly budget starts to really suffer. You can no longer afford to pay your creditors more than the minimum, and soon you find yourself in a very frustrating circle of living pay-check to pay-check. You have completely used up your savings, you have pulled all the equity from your home, and now you are left with a high mortgage payment and a lot of credit card debt.


You now have two options:

  1. you ignore it all and pray that it will somehow just go away; or
  2. you seek professional legal advice from an attorney that you feel comfortable working with.

If you pick the first option, then chances are you may just make your situation worse, because most debt problems don’t go away by themselves, at least not without causing you a lot of sleepless nights and stress. Also, before you know it, you may start to get lawsuits, wage garnishments, or foreclosure notices.


But if you select the second option, you will see that there are many different ways available to solve your debt crisis. You may be eligible for anything from a loan modification of your mortgage, to a debt settlement directly with your credit cards, to a Chapter 7 or Chapter 13 Bankruptcy. You may even be eligible to completely erase your second mortgage from your primary residence!


Having represented hundreds and hundreds of individuals in debt crisis, I’ve seen the devastating effects of serious debt problems on people’s personal lives, their businesses, their families and their marriages. However, once an individual makes a decision to reclaim control of their financial lives, they can quickly pick themselves up and receive a fresh start.


The worst thing that you can do right now is to pretend that everything is OK until one day your situation becomes a financial emergency. Instead, you should really consider talking to a professional to see what the best possible option is to fix your debt problem.


For example, if bankruptcy is truly the best way to go, then you need to educate yourself about it. I know that most people are afraid of the concept of Bankruptcy. But what are you afraid of? More than 1 million people in this country file for bankruptcy every year and they do just fine. Most of these people rebuild their credit in 2-3 years and a lot of them qualify to buy a home even after bankruptcy.


Don’t get me wrong. Bankruptcy is certainly not for everyone because it is not a one-size-fits-all proposition. But when done right, you may find yourself thinking why you hadn’t done it sooner to end your debt suffering. Filing for bankruptcy protection automatically stops all creditor actions such as harassing phone calls, collection letters, lawsuits, wage garnishments, foreclosure and repossession. Contrary to what most people think, filing for Bankruptcy does not necessarily mean that you will lose your house or your job or that anyone will storm into your house and take everything away. Talk to an experienced attorney to see what protections you can seek amd what optiona are available.


Generally, two types of bankruptcy relief are available. You can either wipe out debts (Chapter 7) you can no longer afford to pay (example: credit cards) or you may consolidate all your debts into one low monthly payment and pay only based on what you can afford (Chapter 13). Which chapter is right for you is usually determined by your income and assets. Either way, bankruptcy relief can be a first step in rebuilding your finances and your life.


If you have done everything you can to get out of debt but you have simply come to the conclusion there is no other way out, don’t be embarrassed to seek legal help.


None of the information herein is intended to give legal advice for any specific situation. For a free attorney consultation, contact us or call Attorney Nikki Hashemi at 818-377-7477. Consultations available in the Valley and Orange County.



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