Debt Settlement Lawyers in Los Angeles
Driven to Get Results for Our Clients
Our economy was already struggling in recent years, and with the onslaught of COVID-19, we are closer than ever on the brink of a recession. As a result, many individuals and businesses are struggling with paying debts for no fault of their own. If you are feeling overwhelmed by high mountains of debt, you need to know that you are not alone. Our reliable debt settlement attorneys in Los Angeles are here to help.
Now, you may have heard that one potential option for decreasing your debt is through debt consolidation and settlement. This can be a helpful option of relief for some people attempting to pay back pricy loans through working directly with their creditors to decrease the payments that are due. In certain cases, a creditor might be willing to limit the amounts of debts that are owed, potentially allowing a smaller lump sum of payment. They might even be willing to negotiate an extended plan for installment, rather than facing the fact that they could lose everything if you file for bankruptcy.
The question is whether debt settlement is really the best option for you, since certain types of debts do not even qualify for consolidation. To determine the most viable action to take, you can count on The Turoci Bankruptcy Firm to give you sound advice and representation.
Call us today at (310) 846-8454 for dependable support for all your settlement questions.
What Is Debt Settlement?
Debt settlement, also known as debt consolidation, involves interacting directly with each of your creditors to whom you owe money. Through debt settlements, you and your creditors try to work together in decreasing the amount of debt that is owed, either by diminishing the loan amount or accepting a more reasonable form of payment installment.
Because the arrangement for the payment is voluntary on both sides, and the agreement can be cut off by either party at any time, which may seem like a simple solution to your debt problem. The issue is that there are actually many hidden traps that could occur in debt settlement arrangements that might land you in a less desirable position than before.
Disadvantages of Debt Consolidation
There are certain debts, called unsecured loans, which could be considered for debt settlement. These unsecured loans, which are not affixed to physical possessions or property like cars or houses, are able to be considered under debt settlement.
Unsecured debts that are allowed include:
- Bills for cell phones
- Business debts
- Credit cards
- Private student loans
- Medical issues
- Car repossessions
However, there are several debts that do not apply, called secured loans. These tend to be much larger payments.
Examples of secured loans which do not apply for debt settlement include payments for:
- Child support
- Car loan payments
- Tax debt
- Government student loans
- Utility bills
Many consolidation plans exclude the largest debts you owe, but they tend to act like an extended chain, dragging on for many years without decreasing the overall balance.
Alternative Solutions Through Chapter 13 Bankruptcy
The best alternative to debt settlement is getting complete protection from all of your creditors. You can do this by applying for a full Chapter 13 bankruptcy, which will allow you to consolidate your debt into single payments each month, which will take a maximum of 5 years to complete. Our seasoned debt settlement lawyers in Los Angeles can help you decide the optimal solution for your individual needs.
Chapter 7 Bankruptcy- Former Client
Great process- Former Client
I would recommend them to anyone looking to file bankruptcy.- Former Client
Todd, was great, He helped me to get through a rather tough time.- Eric Quinn
Thank you Mr. Turoci for assisting me with my financial situation. You and your staff (Daisy, Courtney, Laura, and Dana) were so helpful!- Kimberly Deasey
Certified Bankruptcy Specialists
Todd is one of the few Certified Bankruptcy Specialists in the Central District and the only one in the Inland Empire, as designated by the American Board of Certification.
Free, No-Obligation Consultation
Our firm offers free, no-obligation consultations for those who chose to retain our services.
We can understand how challenging this process can be and will guide you through, every step of the way.
We offer our clients after-hour, weekend and same day appointments to meet your busy schedule.
When you hire us, you will have direct access to your attorney from start to finish.
Our team is bilingual! We service our clients in English & Spanish.