Mortgage and real estate debt problems continue to impact many people in the Inland Empire and Orange County areas even years after the financial crisis of 2008. Even if you have resolved your real estate issues through short sale or foreclosure, you may still have added to your outstanding credit amounts with unsecured debts like credit cards, pay day loans, or other cash loans. You may also have a home equity line of credit or heloc that was not completely resolved by the short sale or foreclosure. Through financial hardship, some people may have put mortgage payments on credit cards or HOA payments on credit cards. If you have sold or lost your home since those credit purchases and withdrawals were made, you can relieve your self of those debts through bankruptcy.
If your unsecured debt still lingers after you have resolved your real estate debt matters, now may be the perfect time for you to file for bankruptcy. There are three great benefits to filing for bankruptcy immediately.
1. The ability to repair your credit immediately after you have had a negative impact on your credit.
2. A bankruptcy allows you to show proof of insolvency to forgive any 1099 income tax liability from a cancellation on a mortgage debt or HELOC. (Make sure to talk to your accountant about this one)
3. Discharge your unsecured debt completely to allow for your financial situation to recover quickly.
Many families are still reeling from the impact of the real estate and financial crisis. Make sure you are educated on your options in dealing with the challenges. Our Riverside bankruptcy attorneys and Orange County bankruptcy attorneys are here to help you out of your situation and help you continue to recover from your past due debts.
If you are interested in contacting Bankruptcy Law Professionals for a phone or in-person consultation, contact us at (855) 257-7671 to schedule an appointment. We are proud to continue to service all of the Inland Empire and Orange County with bankruptcy services.