Sherman Oaks Personal Loan Lawyers
If you are facing a credit card lawsuit, have been getting dozens of phone calls a day from credit collection companies, or want to take action to get your credit card debt under control by consolidating your loans or negotiating with the credit card company for a better interest rate, a Sherman Oaks personal loan debt lawyer is here to help. Wadhwani & Shanfeld has a solution for virtually every type of credit card problem.
How Personal Loans Work
Most personal loans are between $1,000 and $50,000, and are extended by a bank, credit union, “payday” loans, or online lender. With most repayment terms between two and seven years, personal loans range anywhere from ten to 40 percent interest, with predatory payday loan companies charging the most outrageous interest rates. The higher the interest rate, the harder it is to pay off the debt, especially if the borrower misses one or two monthly payments. The higher the interest rate, and the longer it takes the borrower to pay off the loan, the more profit the lender enjoys.
Personal Loans are Unsecured Debt
Unlike a car loan or a home mortgage, a personal loan is unsecured (usually), meaning there is no collateral required and no tangible thing that it is tied to. They are often used to pay for home improvement projects, to refinance an existing loan for a better interest rate, or to pay for weddings, vacations, or medical emergencies. As such, because the personal loan is unsecured, it is possible to file for Chapter 7 bankruptcy and have the remaining debt discharged.
Discharging a Personal Loan by Filing for Chapter 7 Bankruptcy
There are a number of solutions that might possibly work for you before you decide to file for Chapter 7 bankruptcy, including negotiating with the lender directly to reach a more manageable solution. Remember, the lender is in this to make a profit. You filing bankruptcy means they will not make anymore money off of your loan, so you actually hold more power than you think.
Once you file Chapter 7 bankruptcy, you are granted an automatic stay that instantly stops the collection efforts of the lender or collection agency. This provides you immediate relief, including putting an end to harassing and abusive collection practices, such as repeated phone calls. Chapter 7 bankruptcy can quickly discharge your unsecured debt after filing. It will be wiped out permanently, and you will most likely not have to pay back another dollar of the remaining personal loan debt. The downside to Chapter 7 is that it impacts your credit score, making it harder to secure loans in the future.
Call a Sherman Oaks Personal Loan Lawyer Today
As with any big financial decision, there are pros and cons to filing Chapter 7 bankruptcy. The Sherman Oaks personal loan lawyers at Wadhwani & Shanfeld are here to help you make the decision that is in your long term best interest. We can help you get back on your feet, one way or another. Call us today at 899-996-9932 to schedule a free consultation.
