People in the fastest-growing community in Salinas County are a lot like the people in other parts of Northern California. They work hard but have little long-term financial security. A third of Californians do not have enough money in their checking accounts to cover a $400 unanticipated expense. So, when the financial storms of life hit, such as divorces, job losses, and economic downturns, they hopelessly drown many families under waves of debt.
At Miranda, Magden & Miranda, we offer lifelines to people in these situations. For over 200 years, federal bankruptcy has been a safe harbor from creditors and a way to get a fresh start. Our hard-working professionals are dedicated to these fundamental American principles. Our experienced lawyers are usually able to keep creditors from touching your important financial assets. Furthermore, we give people the tools they need to emerge from bankruptcy on a solid financial footing. After a few years, many of our former clients do not even remember that they filed bankruptcy.
Unsecured Debt Elimination in Seaside
Many people in California struggle with unsecured debt, like credit cards and medical bills. In many cases, one of the aforementioned financial storms disrupted a family’s income stream. That disruption forced them to turn to things like credit cards and payday loans. As a rule of thumb, if your family has more than about $5,000 in unsecured debt, it is impossible to repay without some help.
Chapter 7 bankruptcy eliminates most unsecured debt within a few months. During that time, the Automatic Stay prevents creditors from taking adverse action, such as:
- Wage garnishment, and
- Collection phone calls.
Section 362 of the Bankruptcy Code gives California families breathing room, so they can deal with debt before the situation gets completely out of hand.
Most people qualify for Chapter 7 debt relief. They must take a debt counseling class before filing and a debt management class prior to discharge. Furthermore, their income must be below the California average. As of May 1, 2019, that amount was $96,813 for a family of four.
Chapter 13 Bankruptcy in Seaside
Other families struggle with past-due secured debt. Generally for reasons beyond their control, they fall behind on things like home mortgage installment payments and auto loan payments. Legally, lenders can begin foreclosure or repossession proceedings after just one or two missed payments.
Through the Automatic Stay, bankruptcy provides immediate relief. Even if the auctioneer’s gavel is about to fall, Chapter 13 immediately stops foreclosure proceedings, in most cases.
But Chapter 13 does more than stop a pending foreclosure. It helps prevent future adverse actions. The wage-earner plan gives families up to five years to catch up on past-due amounts. The repayment plan is income-based. It is not based on what the moneylender demands. Generally, moneylenders must accept this plan because of the Automatic Stay.
There is more good news. At the end of the proceeding, Chapter 13 discharges most unsecured debts. So, Californians can focus on keeping current on their secured debts. Furthermore, the attorneys at Miranda, Magden & Miranda can use advanced options, such as lien stripping, which may save your family thousands of dollars.
Reach Out to a Diligent Lawyer
Bankruptcy helps California families weather financial storms and put out to sea under calm conditions. For a confidential consultation with an experienced bankruptcy attorney in Seaside, contact Miranda, Magden & Miranda LLP.