How working with your lender can help avoid foreclosure and bankruptcy
It is so simple that it is often overlooked, but working with your creditors at the first sign of trouble is often the best way to avoid bankruptcy and foreclosure down the road. However, there is more to negotiating loan modifications that simply calling your lender and asking for a change. An experienced Ventura debt relief attorney from Raichelson Law, P.C. can help you show your lenders the realities of your financial situation. Our thorough knowledge of bankruptcy law allows us to help your lenders realize what they stand to lose should you be forced into bankruptcy. In this way, we have helped countless people in Encino, Sherman Oaks and Northridge renegotiate their debt obligations to manageable levels and take back control of their financial lives.
Why creditors are willing to work with lenders
When negotiating debt settlements and loan modifications, creditors do what makes business sense to them at the time. This means that they are unlikely to reduce your monthly payments out of sympathy, but they may do so if they are worried about what they will lose if you file for bankruptcy or go into foreclosure.
As loan modification lawyers with years of experience practicing in Woodland Hills and Van Nuys, we know how to convince lenders to negotiate. By showing lenders that there is a real possibility of the borrower entering Chapter 7 bankruptcy — and what they stand to lose if that occurs — we are often successful at changing the minds of even hardline lenders.
What kind of loan modification can you get?
Effective loan modification negotiations can sometimes allow you to receive an even better deal than you could expect to achieve through Chapter 13 bankruptcy. Under the right circumstances and with the right motivation, lenders in Los Angeles and Ventura County may be willing to provide several benefits that can help you avoid or cure default on your loans:
- Interest reduction
- Temporary forbearance
- Waiver of penalties
- Increased term
- Principal reduction
- Rescheduled payments
Our attorneys can help you negotiate and memorialize favorable loan modification agreements with both secured and unsecured lenders. By taking early steps such as debt consolidation or modification when you first begin struggling to make payments, you can often avoid resorting to more extreme measures later on.
Call our attorneys for help taking control of your debt
Our lawyers at Raichelson Law, P.C. use their substantial knowledge of bankruptcy and debt law to help individuals and businesses in Oxnard and Ventura negotiate favorable modifications and debt workouts. Call our office at 818-444-7770 or contact us online to schedule a free consultation to learn how we can help you work with your creditors to resolve debt without the need for bankruptcy.