Law suit from Legal Recovery Offices in San Diego?

Have you been served or sued by Legal recovery offices on behalf of a Portfolio Recovery account. I have been noticing more and more clients with old debts that are getting law suits by this firm in San Diego. There is still time to settle the suit and hopefully for pennies on the dollar since that is what they bought it for. California has a 4 year statute of limitations on written contracts and it seems like this firm likes to sue people right before that runs which usually means they bought the account for very cheap. I have been successful in negotiating good settlements with them and if they don’t want to settle we can always file chapter 7 bankruptcy and either extinguish it or pay it back over time for less than what is owed at 0% interest. Now is the not the time to wait if you have been sued by this firm. Call my office to discuss options.

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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