Riverside County Loan Modification, Don’t wait on it know your options in bankruptcy

I am predicting that the tide of bankruptcies will not be falling anytime soon based on the new numbers that came out in June 2010. Overall California’s unemployment rate decreased to 12.3% according to data that was released by the California unemployment development department. That’s a .1% decrease and a year ago the unemployment rate was 11.6%. Riverside county’s unemployment rate grew to 14.5% which is .5% up from a month before. I also recently read that 10% of homes in Riverside county are 90 days or more deliquent on their mortgage payments. The data spells trouble for people who have lost their jobs or who are currently working with lenders on modifications. Remember that bankruptcy is a right and is something that should be considered a tool to help move out of the current situation that we are in. Our economy is based on consumer spending and when consumers can’t open their wallets due to old obligations that are unlikely to be paid its better to take the pain quickly then to walk around on a broken leg for years. My personal feeling is that the banks are dragging people along and giving them false hope of a modification which are often meaningless so that they don’t have to dump all these excess properties on the market which will depress prices even more and affect the banks. Bankruptcy needs to be looked at as a business decision and people have to let the negative emotions and connotations that are associated with it fall by the wasteside. Getting your family back on track from a new starting point in my opinion is better for the economy than allowing modifications, late payments and collection companies to prosper in an environment that ultimately hurts everyone.

Frequently Asked Questions: Debt Consolidation in California
How does debt consolidation affect credit scores?

Initially, it might cause a slight dip due to credit inquiries. However, consistent payments can improve your credit score over time.

What is the difference between debt consolidation and debt settlement?

Debt consolidation involves taking a new loan to pay off debts, while debt settlement is negotiating to pay less than you owe. Settlement can negatively impact your credit score.

What are secured vs. unsecured debt consolidation loans?

Secured loans require collateral (like a house or car), usually with lower interest rates. Unsecured loans don't require collateral but typically have higher rates.

Is debt consolidation right for me?

It depends on your total debt, interest rates, credit score, and payment capability. It's suitable if you can pay off your debt within five years and secure a lower interest rate than your current debts.

Should I consider long-term financial planning?

Yes, debt consolidation should be part of a broader financial strategy including budgeting, cutting expenses, and building an emergency fund.

How do Chapter 7 and Chapter 13 bankruptcies in California differ?

Chapter 7 involves liquidating assets to pay off debts, while Chapter 13 allows debt restructuring over a set period, usually three to five years.

Can my spouse's bank account be garnished for my debt?

Bankruptcy laws offer protections against such actions, but specifics depend on individual cases and state laws.

How can I learn more about my options?

Consulting a California bankruptcy attorney can provide clarity. Firms like The Law Offices of Christopher Hewitt offer free consultations to explore debt relief paths.

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