Rancho Cucamonga Personal Loan Debt Settlement Lawyer
According to TransUnion, about 23 million Americans have personal loans from banks and other lenders, with an average balance of $11,500. These loans are popular for those looking to make home repairs, go on vacation, or simply get extra money to go shopping. Increasingly, the tough economy has forced some Americans to seek out personal loans to pay daily expenses. These loans typically have lower interest rates than credit cards, and you pay them back in equal monthly installments over several years.
Unfortunately, many borrowers cannot make their monthly payment, which could lead to default and a lawsuit in court. If the lender gets a judgment, they could put a lien on your home or garnish your wages.
Please contact Wadhwani & Shanfeld. We know the right techniques for managing debt so you can get some breathing room. Call to speak with a Rancho Cucamonga personal loan debt settlement lawyer.
What is Debt Settlement?
Sometimes, a lender will agree to reduce the amount you pay back in exchange for a lump sum. Our client ends up paying much less than the full amount owed, and the lender will forgive any remaining balance. This might sound too good to be true, but we’ve settled countless debts this way. In fact, large lenders usually have full-time employees whose job is to negotiate these types of agreements.
Typically, a lender fears a debtor will file for bankruptcy. You can eliminate an unsecured personal loan in a Chapter 7, and your lender might only get a fraction of what you owe. In many cases, they end up with nothing at all.
Consequently, you have leverage to negotiate aggressively. Let us be your voice in the process. We can fully review your finances to see if you have a strong case. Critical factors will be whether you have filed for bankruptcy recently, as well as what assets you own.
Bankruptcy is Also an Option
Debt settlement isn’t for everybody, and a personal loan creditor is not legally obligated to accept less than the full value of a debt. In some cases, we might recommend that our clients file for bankruptcy instead of negotiation. A Chapter 7 bankruptcy is a great option for our clients who have few assets, or whose main assets (like equity in a home) is exempt under the law. In those situations, you can discharge an unsecured personal loan in a couple of months and walk free and clear.
Another bankruptcy option is Chapter 13, which takes up to 5 years to complete. You roll a personal loan into your monthly payment plan, based on your disposable income. At the end, any unpaid balance on a personal loan should be forgiven.
Speak with Our Rancho Cucamonga Lawyers Today
Wadhwani & Shanfeld encourages any facing financial stress to pick up the phone and call us. A Rancho Cucamonga personal debt settlement lawyer can discuss how to tackle your debts, including any personal loans you have signed up for. Our consultations are confidential, and there’s no risk to calling.
