Being overwhelmed with debt is increasingly the norm in our society, but knowing that doesn’t make it any easier to provide for yourself, your family, and your ongoing ability to improve your financial standing. But there may be a legal solution to help you withstand the harassing calls, letters, and financial threats to your security and well-being that come with debts you are unable to pay.
Whether your debts relate to medical bills, education costs, credit cards, housing costs, or any other source, the California civil litigation attorneys at the Law Offices of Omar Gastelum and Associates, PLC, in Los Angeles and Newport Beach can help fight on your behalf to pursue legal strategies to reduce the stress of excessive debt in your life through loan modification.
What Can Be Achieved Through Loan Modification?
Loan modification is a process by which our attorneys will negotiate with your creditors on your behalf to achieve sensible repayment options which meet your budget and reduce the stress and strain on your life that comes from high-rate debt. It is not bankruptcy, and it will not necessarily affect your credit rating.
Creditors know that there are a certain portion of outstanding loans each year that will not be paid in full or perhaps at all, and so they are eager to reach solutions by which they will at least be able to recoup some of the outstanding loan, even if this means the amount of the debt will be reduced and/or the terms of the repayment will become more favorable to the borrower.
Our attorneys understand how creditors operate and maneuver with regards to their willingness to agree to loan modification, and we will strategically pursue any and all loan modification strategies on your behalf to reduce your financial burden, including:
- Reducing the principal owed on your loans
- Extending the time by which you are able to repay the loan
- Reducing the interest rate owed on your loans
- Converting variable rates to fixed rates
- Reducing or eliminating future or past penalties (e.g. rate increases, acceleration clauses) for failure to pay per the terms of the loan
- Consolidating loans into simple payment plans
Creditors often want to have assurances that you as the borrower will be able to comply with the terms of any loan modifications, and our attorneys will advocate on your behalf to get you the best modification possible.
Choosing Between Bankruptcy and Loan Modification
Again, loan modification is a process that generally occurs voluntarily on the part of creditors outside of the bankruptcy process. Our attorneys, however, can also provide consultation to you regarding whether loan modification is the proper strategy to pursue or whether you may be better off pursuing a bankruptcy action.
One of the chief benefits of pursuing bankruptcy is that our bankruptcy attorneys will be able to immediately pursue in automatic stay in federal court on your behalf which will prevent all creditors from contacting or otherwise pursuing you regarding outstanding loans.
We will also work with you to determine whether a Chapter 7 bankruptcy (which eliminates eligible debts entirely upon completion of the bankruptcy) or a Chapter 13 bankruptcy (which reorganizes and restructures your debts, but which does not require you to surrender assets in the same way a Chapter 7 bankruptcy does) is the better option in your situation. We will then take all steps to finalize your bankruptcy through federal court action, all in the pursuit of helping you start over and rebuild your life without the often crippling burden of excessive debt.
Get on the Road to Relief With the Loan Modification Attorneys at Gastelum Law
If you are unable to pay the bills due on loans (medical, student loans, credit cards, mortgages, etc.), we may be able to help reduce your debt burden and get you and your family on the road to financial relief. At the Law Offices of Omar Gastelum and Associates, PLC, our experienced loan modification attorneys will work with you to obtain both immediate and long-term relief through loan modification and, if necessary, bankruptcy protection. Contact the Law Offices of Omar Gastelum and Associates, PLC today for a free consultation on how our attorneys can help you start building a better financial tomorrow today.