Memorial Day and how bankruptcy affects soldiers

Today is memorial day and a day to reflect on how people in uniform give back to our country by facing the ultimate sacrifice. Being a bankruptcy attorney in the coachella valley I have assisted many clients who serve in the 29 Palms area. I always take there cases for the cheapest that I will do any bankruptcy for which leaves me very little if any profit after you take all of my expenses into consideration. That charge is $1000 dollars for attorney fees. I am always amazed that the people who are willing to go to war and move there families all over the country are paid a low as they are and yet still come into the army many time with car repossessions and other debt problems. I recently had a client that makes a net pay $1500 a month but spends close to 900 to service an unsecured debt load. He had a wife and a child as well. Fortunately for him he only had to not pay his creditors for a month and he had my fee taken care of. Some people who have called me talk to their superior officers who tell them that bankruptcy can have potential clearance and security issues in their future and seem to try to dissuade them from a law that is here to benefit all citizens.

To me its not fathomable to try to keep someone living in poverty over mistakes they have made in the past or just the effects of the economy which have seen people left with bad 2nd mortgages after foreclosure or job loss leading to not being able to make good on car financing contracts etc. In my experience I have filed bankruptcy for managers of city’s, heads of police departments, multi-million dollar business creators. They have all used the bankruptcy code to their benefit so to see people in uniform dissuaded from using bankruptcy is something that I don’t agree with. If you are military and stationed in Twenty-nine palms please call me for a fair evaluation of how bankruptcy can effect you. Call an experienced Riverside County Bankruptcy Attorney. You’ll be glad you did. Happy memorial day and thank you for your service.

Frequently Asked Questions: Debt Consolidation in California
How does debt consolidation affect credit scores?

Initially, it might cause a slight dip due to credit inquiries. However, consistent payments can improve your credit score over time.

What is the difference between debt consolidation and debt settlement?

Debt consolidation involves taking a new loan to pay off debts, while debt settlement is negotiating to pay less than you owe. Settlement can negatively impact your credit score.

What are secured vs. unsecured debt consolidation loans?

Secured loans require collateral (like a house or car), usually with lower interest rates. Unsecured loans don't require collateral but typically have higher rates.

Is debt consolidation right for me?

It depends on your total debt, interest rates, credit score, and payment capability. It's suitable if you can pay off your debt within five years and secure a lower interest rate than your current debts.

Should I consider long-term financial planning?

Yes, debt consolidation should be part of a broader financial strategy including budgeting, cutting expenses, and building an emergency fund.

How do Chapter 7 and Chapter 13 bankruptcies in California differ?

Chapter 7 involves liquidating assets to pay off debts, while Chapter 13 allows debt restructuring over a set period, usually three to five years.

Can my spouse's bank account be garnished for my debt?

Bankruptcy laws offer protections against such actions, but specifics depend on individual cases and state laws.

How can I learn more about my options?

Consulting a California bankruptcy attorney can provide clarity. Firms like The Law Offices of Christopher Hewitt offer free consultations to explore debt relief paths.

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