How to Deal with Debts During the Corona-virus Outbreak

Dealing with debt during the Corona virus outbreak

Corona virus (COVID-19) has affected the lives of millions of people around the globe. Not only has this pandemic resulted in a massive loss of lives, but it also left millions of people jobless. Even those who are still employed have been asked to work on reduced pay, which has further aggravated the situation. Worst is if you are already dealing with debt amidst this crisis. Every other individual has to keep up with their personal loan, credit card debt, and mortgage payments.
With the financial pressure mounting, what should you do to deal with debts during the Corona virus outbreak? Though the government has taken measures to offer some kind of relief to the borrowers, in what ways is it going to benefit you? How many waivers can you expect? All these questions are haunting many like you. We are here to shed some light to help you out in dealing with debts during this pandemic.

Mortgage Payment Help

There are a few steps that the government has taken and one such is the CARES Act. The Coronavirus Aid, Relief, and Economic Security Act – in short CARES Act, is a law aimed at addressing the economic fallout in the United States during the COVID-19 pandemic. So the first thing to check should be your eligibility for forbearance or short term relief like a waiver of late fees and other charges. As per the act, a 60-day moratorium may also be offered. It has been further extended till the end of June (You should keep an eye on it and stay informed).

Credit Cards, Personal Loans And Small Business Loans

Many credit card providers, such as Capital One, Citi, Chase, U.S. Bank, Wells Fargo, and few others, have released various statements and media briefings on their websites, announcing assistance for the consumers during the COVID-19 outbreak. Some of the help offered includes credit line increases, collection and recovery forbearance, and even payment breaks. It may be wise to get as much relief as possible from these options, or if nothing works, then seeking help from a debt settlement attorney may be an alternative. Lenders might offer repayment plans or arrangements as per their policies. Banks and financial institutions have also been asked not to report the delinquencies during the Corona outbreak as per the instructions laid out by the government.

Explore all the options

While it’s great to be familiar with options available, there are a few people who may still not be sure of what to do next. At a difficult time, particularly like this, when you don’t know where life is heading, or where your next income comes from, you should explore every possible option. Both individuals and businesses are filing for bankruptcy when there is no alternative. You should, first of all, explore the benefits offered, as they may add some respite to your financial well-being. You can get in touch with your lender too to check what help or relief they are willing to offer. In many cases, borrowers have opted for moratorium and payment breaks. When all the options have been explored, and you haven’t been able to find out anything positive, you not just meet the obligations but also sustain it for the period after that. But despite everything, if there is no relief in sight, then speaking to a trusted and professional bankruptcy attorney may be a good idea.

Final Words
Like the other difficult times, this too shall pass. Having said that, if there are no solutions in sight, then speaking to someone, who can offer you unbiased consultation and share detailed insights like a trusted bankruptcy attorney, maybe a good thing to do. At Nader & Berneman, we know what it takes to get you out of financial troubles. You may speak to us to know more.

Secured vs. Unsecured Debts

There are different types of financing methods, but basically, there are two types of loans that a consumer can take. One is the secured debt, and the second is the unsecured debts. It is vital to understand the difference between the two while borrowing the money and to plan the repayment. So here in this article, you will get to know what these two are and also about the benefits of hiring debt settlement attorneys.

Secured debts
Secured debts are those in which the borrowers keep their assets as security. While placing your assets as security, you give the rights to the lender to seize your assets, when failed to repay the debt amount. Further, the assets can be sealed and sold by auction process to generate the amount of money that you owe to the lender. And, by chance, if the asset is not sold at the debt amount i.e. sold at a lower price, then the balance is levied on the borrower. A debt settlement attorney can be of great help to let you know all the formalities and rules governing the same.

Unsecured debts
In unsecured debts, you do not have to keep your assets as security, and lenders do not have a right to ask for any collateral. Even if you fail to make the debt repayments, they cannot put a claim on your assets and property. Though there are other actions that they can take to get their money back, they cannot come and simply seize your property. They may hire people to pressurize you to pay your debts or may take you to court for your inability to pay the debts by seeking assistance from a foreclosure attorney in Los Angeles or any other place for that matter. Also, they let your payment status known to credit bureaus which will further spoil your credit score.

How attorneys can help you in such a condition?
Debt attorneys can be of great help when you are facing such an issue with debt repayments. Hiring them can assure you of having someone besides you who can take care of your debt settlement issues and play your part in handling your creditors. Here are a few advantages of hiring them:

You don’t have to explain yourself to your creditors. It’s not that they forget your debts but because the attorney will handle all the calls from lenders with their expertise and knowledge.
You stop getting phone calls from your creditors. You get some mental peace when you have someone besides to guide you and help you cope with such a state of turmoil.
The attorneys can also earn you some negotiation with your creditors due to their contacts and expertise in this field.
When your creditor takes you to court to sue you, then a debt settlement lawyer can be of great help and may guide you during the legal proceedings.
They can help you deal with the situation. If you are not in a condition to make the repayments, then they can also help you in filing for bankruptcy. You would be surprised how a bankruptcy lawyer handles bankruptcy and improves his client’s financial situation with his skills and expertise.

So now you must have clearly understood the difference between the two kinds of debts. Which type of debt to take solely relies on you, but if you happen to get stuck in making the repayments, then walking to a bankruptcy law firm can be your best bet. Find the best foreclosure and debt lawyer near you who can guide you in all aspects to let you have a new start.

When Should You File for Bankruptcy? Sooner or Later

Being bankrupt is a scary situation and in itself is an ominous thing that no one should undergo. It is no less than a nightmare that anybody would dread of. But many times people have to face such a situation when they have suffered huge losses and are unable to repay the loan amount. In such a case the question arises should one file for bankruptcy sooner or later? The answer is “sooner.” Your eyes may have gone wide seeing this, but yes filing for bankruptcy at an early stage can help you in a lot many ways. Even in Los Angeles chapter 13 bankruptcy attorneys would suggest you the same to stop foreclosures and to save your property and avail the benefits of exemptions. Here are a few reasons that will make you believe that filing for a bankruptcy at an earlier stage is better than filing it later:

Foreclosure plans
If the bank has decided to foreclose on your house, then you can consider filing for bankruptcy to stop the foreclosure. Filing for bankruptcy helps in prohibiting the lenders from continuing with their collection. Even if you are ready to part with your home for the foreclosure, you should consider filing for bankruptcy. This is advisory because in many states there are rules which waver the difference or your outstanding amount if your sale property is not able to draw a sum equivalent to our mortgage balance. Bankruptcy attorney in Encino can help you also in filing bankruptcy so that if any such case arises, the difference is forgiven.

To avail the benefits of exemptions
Every state has different policies and rules in case of filing for bankruptcy. There are a few exemptions that the borrower can keep from his property to use it for himself/herself. One can consider seeking advice from Bankruptcy lawyer in Los Angeles CA to have a clear picture in this regard. In case you have moved to a new state and the laws there are not as favorable as the previous city you stayed in, then filing bankruptcy is the only option that you may have. This is advised because you can use the domicile certificate of your old state and still avail the exemptions that were allowed in the previous state.

To get an extension for rent payment
Many times it happens that your landlord may force you for house eviction, but filing for bankruptcy can save you from any such eviction. Ultimately you will have to pay the rent for the time period you have stated in the rented house but filing for bankruptcy can borrow you some extra time for the making the payments. But there are few rules in favor of the landlords such as eviction due to drugs, possession, etc. You can contact a Bankruptcy attorney in San Fernando Valley to know more about the rules and regulations to get an extension for the payment and to stop the eviction.

To pass the means test in case of starting a new job with higher income
If you want to qualify for chapter 7 bankruptcy, then you have to consult a Chapter 7 bankruptcy attorney in Los Angeles who can help you out to clear the ‘means test.’ Here your total income also plays a vital role as the average of the previous six months’ income from the date of filing bankruptcy is taken up for the calculation. For this, you need to note that if you are drawing a higher salary then the chances of clearing the mean test decreases. So it is better that you file bankruptcy soon so that the previous average of your low paid job is taken into consideration and not the new one.
So consider seeking help from Bankruptcy Attorney in Woodland Hills, Los Angeles or Encino, who can assist and guide you in taking your decision of filing bankruptcy to win you extensions and exemptions.

Nader & Berneman, Attorneys at Law
Address: 21800 Oxnard Street, Suite 720 Woodland Hills, CA 91367
Service Areas- Encino, Woodland Hills & San Fernando Valley
Web- https://www.naderlawfirm.com/
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How a bankruptcy lawyer handles bankruptcy and improves his client’s financial situation?

In the recent years, Bankruptcy filings have gone up significantly and that’s not a bad thing. Filing for bankruptcy does not necessarily have to be a bad affair. Before diving into the topic, let’s have a brief overview of the bankruptcy filings.

Chapter 7 and Chapter 13 are the most common type of consumer bankruptcy. Both these types offer protection from the creditors, but the type an individual can file relies upon on the circumstances. The bankruptcy procedure is brimming with several rules and regulations that the creditor and debtor must follow. But chapter 11 isn’t as complicated like a civil case.

Some people prefer filing the bankruptcy case on their own to save the lawyer charge, however that may add a lot of complexities as the individuals are already in financial crisis. So, this isn’t a wise decision because a highly experienced Debt Relief Attorney Los Angeles can help you in avoiding unnecessary tension and most importantly save some money.

Let’s understand what are Chapter 7 and chapter 13 in detail
As mentioned above, the two kinds of bankruptcy accessible to consumers are Chapter 7 or Chapter 13. The way how each bankruptcy handles the financial circumstance and save you from the debt is different. For chapter 7, the case happens with the discharge as there is no repayment plan, so you become debt free. A Chapter 7 bankruptcy lawyer in Los Angeles may take care of your debt settlement and help you become debt-free in quick time.

In chapter 13 the debt handling process is entirely different, and it’s an excellent choice for the people with regular income. Chapter 13 is for the individuals who have enough standard pay to pay back something like a part of the debt. Chapter 13 bankruptcy acts more like a debt restructuring and is more convenient as it comes with a more rational payback plan. Due to this flexibility, the payback amount is very less than the initial amount where it began. So ultimately the person will be able to manage the debt much better.

What is expected from the consumer?

Undergo the pre-bankruptcy credit counseling class before the bankruptcy filing
Make sure you fill the bankruptcy forms correctly and pay the filing fees
Appear in front of the bankruptcy trustee meeting with the creditors
Make your payments
Abide the court orders

How can a Debt relief attorney in Los Angeles CA help you?

Handling Credit Cards, Loans and Repossessions
A lawyer will illustrate the ideal approach to manage payday loans or Mastercard debt. The attorney will also explain how these are handled, how these will have an impact on your credit rating and various means to restore your credits as early as possible.

Debt Relief attorney in Woodland Hills CA try by all means to prevent the repossession or foreclosure so you can protect your property or automobiles from legal action.

Handling Debts payment
Debt settlement attorney in Los Angeles will analyze your financial background and determine your type of debt and approaches to deal with the debt. Before filing for bankruptcy, your attorneys will advise you not to pay a huge amount to one creditor than other creditors. In legal terms, it is termed as a preferential transfer. Sometimes to distribute the amount among all creditors equally, the bankruptcy trustee can file a lawsuit to recover the money.

Free Consultations
Before taking up any case, most of the bankruptcy attorney will offer a free consultation to understand your financial background and current debt situation. They are the right ones who can come up with appropriate solutions that will save you from debt and show a better path for a brighter financial circumstance.
Do you wonder what a debt relief attorney can do? Here are some other responsibilities of an attorney:
• Perform Cost-Benefit Analysis
• Determine the type of Bankruptcy
• File a Proof of Claim and Review Proposed to payback Plan
• Save Your Business Upfront
• Conduct Credit Checks

If you are going through any of these financial difficulties and looking for chapter 7 bankruptcy or chapter 13 bankruptcy attorney in Los Angeles, then contact us today!

Nader & Berneman, Attorneys at Law
Address: 21800 Oxnard Street, Suite 720 Woodland Hills, CA 91367
Service Areas- Encino, Woodland Hills & San Fernando Valley
Web- https://www.naderlawfirm.com/
Review Us- https://tinyurl.com/y33qh7re
Find Us on Map- https://tinyurl.com/y34r4x8j