Debt Relief Attorney in Los Angeles

More Than 20 Years of Bankruptcy Experience Behind Your Debt Relief Evaluation

We help Los Angeles individuals and small businesses compare bankruptcy with debt consolidation, debt settlement, creditor negotiation, and property-related alternatives. Before recommending a direction, we review income, ordinary expenses, assets, secured debts tied to collateral, unsecured balances, pending collection actions, and the consequences of each available option. An individualized evaluation doesn’t promise that a particular alternative or bankruptcy chapter will be available.

At RHM LAW LLP, we bring more than 20 years of bankruptcy experience and have filed or overseen more than 7,500 bankruptcy cases. We handle Chapter 7, Chapter 11, and Chapter 13 matters, as well as so-called Chapter 20 strategies that combine a Chapter 7 filing with a Chapter 13 filing, along with IRS tax relief, medical bill relief, wage garnishment, creditor harassment, foreclosure concerns, and repossession-related matters. During a 30-minute complimentary consultation, we can explain how an alternative differs from the legal protections available through bankruptcy.

Call our offices at (213) 344-0043, or contact us to arrange a same-day, 30-minute complimentary consultation. Video consultations are available, and we serve clients in English, Spanish, and Farsi.

Understanding the Bankruptcy Process

At RHM LAW LLP, we guide individuals and small businesses through the bankruptcy process and explain how each stage applies to their financial circumstances.

The bankruptcy process generally includes:

• Initial Consultation: During your initial consultation, our attorneys listen to your situation, assess your financial standing, and explain the bankruptcy options that may be available.
• Filing the Petition: If you decide to proceed, we can assist you in preparing and filing your petition in federal bankruptcy court, including the required financial documents.
• Automatic Stay: The automatic stay generally takes effect after filing and can pause many collection activities, lawsuits, wage garnishments, repossessions, and foreclosure-related actions. Exceptions apply, and a court may modify or terminate the stay.
• Meeting of Creditors: A meeting of creditors is a standard part of many bankruptcy cases. You answer questions about your financial situation, and our attorneys can explain what to expect.
• Discharge of Debts: After applicable requirements are completed, a discharge may eliminate certain qualifying debts. Not every debt is dischargeable.

The appropriate chapter and likely treatment of debts depend on factors such as income, assets, business obligations, secured loans, and eligibility requirements.

How We Evaluate Debt Relief Options in Los Angeles

We review your income, assets, and types of debt, then compare how bankruptcy, consolidation, settlement, and other tools may play out over time. This individualized review is particularly important if you have liens on property in Los Angeles County or own a small business that could be affected by collection activity.

In addition to explaining the law, we can help you prepare for court appearances, respond to lawsuits, and communicate with creditors so you aren’t trying to manage everything alone. If your case involves a potential bankruptcy filing, we have experience with the procedures of the United States Bankruptcy Court for the Central District of California. Timing can be especially important when a lawsuit, wage garnishment, repossession, or foreclosure-related action is already pending.

Our review can also address IRS tax relief, medical bill relief, creditor harassment, and the difference between secured and unsecured debt. A creditor judgment may create additional collection remedies, including wage garnishment or a property lien depending on applicable law, while a private negotiation doesn’t provide the same protections as a bankruptcy filing.

Each alternative addresses a different financial problem. We compare the proposed payment, total cost, effect on property, collection pressure, and possible credit or tax consequences rather than treating a lower monthly payment as proof that an option is workable.

We compare bankruptcy with alternatives including:

• Debt consolidation: Multiple debts are combined into a new payment arrangement. Consolidation doesn’t automatically reduce the principal balance, and affordability and eligibility require careful review.
• Debt settlement: A creditor or collector may agree to accept less than the claimed balance, but an agreement isn’t assured. Interest and fees may continue, and collection lawsuits may remain possible.
• Credit card negotiation: Direct negotiation may address payment terms, interest, or a settlement without creating a new loan. The creditor controls whether it will offer or accept new terms.
• Credit counseling: Nonprofit credit counseling may include budgeting assistance or a debt management plan for qualifying unsecured debts. It differs from taking out a consolidation loan or negotiating a reduced settlement.
• Loan modification: A lender may change loan terms, such as the payment structure, interest rate, or repayment period. Approval and available terms depend on the lender and the borrower’s circumstances.
• Short sale: A property may be sold for less than the secured debt with lender approval. Ownership, a possible deficiency balance, taxes, and credit reporting require review.
• Deed in lieu of foreclosure: The borrower voluntarily transfers the property to the lender. The agreement’s treatment of any remaining balance and other consequences should be examined before signing.

Risks of Debt Settlement & Consolidation

Before you choose a method, we examine whether its payment and terms are affordable and whether it could increase your financial risk. Debt consolidation can create new borrowing obligations, and using home equity as collateral may place that equity at additional risk.

Some people who choose a bankruptcy alternative eventually discover they’re unable to afford the payment plan they selected. Missed payments may lead to added interest or fees, credit damage, incomplete settlements, and possible creditor lawsuits. Forgiven debt can also raise tax questions that should be reviewed with a qualified tax professional.

A non-bankruptcy agreement generally doesn’t create the automatic-stay protection associated with a bankruptcy filing. We can evaluate whether Chapter 7, Chapter 11, Chapter 13, a Chapter 20 strategy combining Chapter 7 and Chapter 13, or a non-bankruptcy option fits the circumstances.

If a collection deadline or property-related action is approaching, request a prompt review from our debt relief attorneys. Use our online form to begin right away.

Frequently Asked Questions

What Are the Benefits & Risks of Bankruptcy Alternatives?

A bankruptcy alternative may allow you to resolve debt without filing a public bankruptcy case. Depending on the method and creditor participation, it may change payment terms, combine debts, or settle an agreed balance. Effects on credit reporting, taxes, property, and collection activity vary, so the benefits should be weighed against the total cost and legal protections the option doesn’t provide.

Should I Pursue Debt Consolidation Instead of Bankruptcy?

Debt consolidation may be an option if you qualify for workable terms and can afford the new payment after ordinary living expenses. It doesn’t automatically lower principal or stop collection activity. Bankruptcy may remain part of the evaluation if your debts are unmanageable, lawsuits are pending, or consolidation would require unaffordable payments or risky collateral.

Can I Negotiate With Creditors Without Filing Bankruptcy?

Yes, you or a professional negotiator can ask creditors to change payment terms or accept a settlement. A creditor may refuse to negotiate, and interest, fees, collection calls, or lawsuits may continue until an enforceable agreement is reached. Settlement can also affect credit reporting and create tax questions when debt is forgiven.

How Can a Loan Modification Help Avoid Bankruptcy?

A loan modification changes loan terms through the lender and may involve the payment structure, interest rate, or repayment period. It’s generally relevant to mortgage or other loan-payment problems, but approval isn’t assured. The proposed terms must be affordable, and any arrears, foreclosure schedule, or remaining unsecured debt should be considered.

What If I Can’t Afford the Alternative Payment Plan?

If you can’t afford the payment plan after accounting for housing, food, transportation, taxes, and other necessary expenses, the alternative may not resolve the underlying problem. A bankruptcy evaluation can address whether Chapter 7 liquidation or Chapter 13 reorganization may be available. Eligibility, asset treatment, and dischargeability depend on the facts.

Will an Alternative Protect Me From Creditor Harassment?

Not automatically. Consolidation, settlement, and creditor negotiation generally depend on voluntary agreements and don’t create the automatic stay associated with a bankruptcy filing. After bankruptcy is filed, the stay generally pauses many creditor actions, including covered lawsuits and wage garnishments, but exceptions apply and a court may modify or terminate it.

Debt Relief Guidance for Los Angeles Clients

To weigh the pros and cons of bankruptcy and its alternatives, speak with our debt relief attorneys. We serve individuals and small businesses in the San Fernando Valley and throughout Southern California. Consultations are available in English, Spanish, and Farsi.

We can also discuss how a collection case in Los Angeles Superior Court differs from a bankruptcy proceeding in the Central District of California. With more than 20 years of experience and more than 7,500 bankruptcy cases filed or overseen, we compare the available paths before you enter an agreement or allow an important deadline to pass.

Before entering a debt relief agreement or allowing a collection deadline to pass, call our offices at (213) 344-0043 or contact us for a same-day, 30-minute complimentary consultation. Video consultations are available in English, Spanish, and Farsi.