With Market So High, KE Law Firm Recommends Clients Look Into Debt Settlement in Addition to Bankruptcy

Market Strength Requires Broadening Options

Karine Karadjian, P.C., a bankruptcy attorney office in Irvine, has recommendations for clients in light of the strong economy. As the market has been so robust, many people have found themselves in a situation where they either have too much equity in their real estate to qualify for Chapter 7 bankruptcy or their income is too high to qualify for Chapter 7. Many are under the impression that the only other alternative in that situation is a Chapter 13 bankruptcy. Not so, according to Karadjian. Her firm recommends a third option, a non-bankruptcy alternative: debt settlement. Some clients may end up paying less through debt settlement than they would in a Chapter 13 bankruptcy repayment plan. In fact, Karadjian can settle most accounts for about 50% of the balance. 

Analysis from market professionals has shown that the stock market has been strong and will continue to be so throughout the rest of 2019. The market’s success tends to correlate with equity in peoples’ homes. Due to this, the firm has found that many who would have qualified for a Chapter 7 bankruptcy in the past currently make too much money or have too much equity in their homes to do so.

In this market, many of those declaring bankruptcy would be forced to pay back amounts of money as high as 100% through a Chapter 13 plan. In response to this, Karine Karadjian’s law firm has begun performing more debt settlements than in the past. That way, clients are required to pay back less.  Every situation is unique but, generally, if the potential client’s unexempt equity in real estate or budget/income requires a Chapter 13 repayment plan that’s higher than 55-60%, debt settlement is a more viable alternative.

“The strong market has been good for many, but it has been difficult on some of those filing for bankruptcy. It just doesn’t make sense for someone to take a bankruptcy where they’d be forced into a 100 percent pay back when there are better options available. Many don’t realize that debt settlement is a valid option that is often better than bankruptcy,” said Karine Karadjian, a bankruptcy attorney with many years of experience in Chapter 7, Chapter 13, and debt settlement.

In addition to assisting clients with debt settlement, Karadjian, a bankruptcy law lawyer in Irvine, can help clients through Chapter 7 bankruptcy and Chapter 13 bankruptcy, depending on which option will work best for a particular client.

For more information about debt settlement, Chapter 7 bankruptcy, Chapter 13 bankruptcy, press inquiries or a consultation with Karine, call (949) 565-4707, (323) 524-2123 or (818) 960-6460.

Source: KE Law Firm