Southern California Ground Zero for debt crisis
Southern California Ground Zero for debt crisis
In recent years, young adults in Southern California have been struggling with excessive debt due to various reasons like student loans, credit card debt, and medical bills. As a result, many of them are looking for ways to manage their debt and find a path to financial freedom. One of the options available to them is filing for Chapter 7 bankruptcy.
Chapter 7 bankruptcy is a legal process that allows individuals to eliminate most of their unsecured debts, such as credit card debt and medical bills. It is also known as a "fresh start" bankruptcy because it gives debtors a chance to start anew without the burden of unmanageable debt.
There are several reasons why young adults in Southern California should consider filing for Chapter 7 bankruptcy:
Student loans: One of the biggest reasons why young adults are struggling with debt is because of their student loans. According to a report by the Federal Reserve, outstanding student loan debt in the United States has reached over 1.7 trillion dollars. Young adults who are burdened with student loan debt and struggling to make payments on time can benefit from Chapter 7 bankruptcy.
Credit card debt: Credit card debt is another common issue for young adults in Southern California. With high interest rates and minimum payments that barely cover the interest, it's easy for credit card debt to spiral out of control. Chapter 7 bankruptcy can help eliminate credit card debt, making it easier for debtors to get back on track financially.
Medical bills: Unexpected medical bills can quickly add up and become overwhelming. In Southern California, where the cost of living is high, many young adults struggle to keep up with medical expenses. Chapter 7 bankruptcy can help discharge medical bills, providing relief for those who are struggling to pay them.
Harassment from debt collectors: When debtors fall behind on payments, they may be subject to harassment from debt collectors. This can include constant phone calls, letters, and even legal action. Chapter 7 bankruptcy can put an end to these harassing tactics and provide debtors with some peace of mind.
Improved credit score: While filing for Chapter 7 bankruptcy will negatively impact a debtor's credit score, it also provides an opportunity for a fresh start. Once debts are discharged, debtors can begin rebuilding their credit by making timely payments on any remaining debt and establishing good financial habits.
If you are struggling with debt and need to reduce or eliminate debt entirely, you may be considering filing for bankruptcy. For a free consultation, call us at 626-338-5505 or a member of our knowledgeable staff will be more than happy to assist you with any questions or needs you may have.