The ABCs of Debt
Alternative to Bankruptcy, Bankruptcy, and Credit Resources
We at Fresh Start LA have put together this section to help you discover and navigate your way through your financial troubles. Using the information here should provide you with not only your options to get out from under the debt you are in, but to also help you rebuild.
There are a number of different options for individuals and businesses to assist in resolving debt. First review the alternatives to bankruptcy, then review the bankruptcy options & resources, and finally review the Credit resources.
Alternative
Debt Consolidation
Combine multiple high-interest debts into a single loan or payment plan with a lower interest rate and one monthly payment.
Debt Settlement
Negotiate with creditors to pay less than your full debt amount. Typically involves saving for lump-sum settlements while debts are in collections.
Loan Modification
Change the terms of your existing loans to make payments more manageable without refinancing. Can include reduced interest, extended terms, or payment deferrals.
Bankruptcy
Chapter 7 Consumer
Chapter 7 bankruptcy allows you to eliminate most unsecured debts in 3-6 months while potentially keeping exempt assets like your home and vehicle.
Chapter 13 Consumer
Chapter 13 allows you to keep your property while paying off a portion of your debts through a 3-5 year court-approved repayment plan.
Chapter 20 Strategy
A strategic combination of Chapter 7 and Chapter 13 filings (7 + 13 = 20) to eliminate unsecured debts and restructure remaining secured debts.
Chapter 11 Business
Chapter 11 bankruptcy allows businesses to restructure debts while continuing operations, providing an opportunity to become profitable again through a court-approved reorganization plan.
Bankruptcy FAQs
Answers to common questions about bankruptcy timing, process, requirements, property exemptions, and how it affects your life and career.
Bankruptcy Appeals
Navigate the complex process of appealing unfavorable bankruptcy court decisions with expert guidance on eligibility, procedures, and court considerations.
Bankruptcy Myths
Separate fact from fiction about bankruptcy with this guide that dispels common misconceptions about the process, costs, impact on assets, and life after filing.
Bankruptcy After Divorce
Navigate the complexities of filing bankruptcy after divorce in California, including impacts on child support, alimony, asset protection, and custody considerations.
Dos & Don'ts
Important guidelines on what to do and avoid when considering or filing for bankruptcy to ensure a successful case.
Credit
Credit Counseling
Professional guidance to manage debt and improve financial health through budgeting advice and debt management plans.
Credit Rebuilding
Strategies to rebuild your credit score after financial hardship, including secured credit products, credit monitoring, and establishing positive payment history.
