Tammy: Hi, I'm Tammy Trujillo. You've probably heard and seen me from Los Angeles radio and television for a lot of year.
One of the stories we've consistently been covering is the financial downturn here in the United States. You know it's bad. It's put a lot of people in very difficult situations.
So what do you do?
Well there are options, you just have to know the right people.
I want to introduce you right now to Raj Wadhwani of Wadhwani & Shanfeld.
And Raj, there are options for people who've been hit pretty hard by this financial situation.
Raj: There are options. We offer both bankruptcy and non-bankruptcy alternatives for clients.
Tammy: Somebody is considering a bankruptcy, Raj, what is the difference between a 7 and a 13?
Raj: That's a great question. Chapter 7 is the most common type of bankruptcy. In Chapter 7, you generally get to keep your assets and eliminate your unsecured debt. And the process lasts about 4 months.
Chapter 13 is a reorganization and Chapter 13 you can pay back the mortgage arears if you own your own home, and you can pay back back taxes if you owe a lot of taxes, or you can simply consolidate your debt.
Tammy: And how does somebody decide between a 7 and a 13?
Raj: It all depends on your situation. If you're bombarded with credit card debt, Chapter 7 may be the right option. Or, if you're behind on a house, Chapter 13 may be the right option.
Tammy: You know, it really sounds scary for somebody that's looking at their financial situation, and oh my gosh, I guess I've got to do it.
Raj: Yeah, I hear that from a lot of my clients. It can be very scary, but it's even scarier not to make the call.
My recommendation is come and see us, there's no obligation whatsoever, and we'll go over all alternatives, both bankruptcy and non-bankruptcy.