Orange County's bankruptcies often involve unemployment, foreclosure, bad real estate debt

An additional $3 billion is being made available by the Obama Administration, including $1 billion in loans for the unemployed and $2 billion in funds for homeowners in the five hardest-hit states, including California.

Many of those filing for bankruptcy in Orange County are dealing with unemployment and/or bad real estate debt. For some, a loan modification or government program could provide assistance. But for many, seeking the advice of a Santa Ana bankruptcy lawyer is the best option for putting an end to financial problems and to seeking a new financial beginning.

CNN reports the $1 billion will be available in loans at 0% interest for amounts up to $50,000. The loans are aimed at assisting the unemployed keep their homes. The remaining $2 billion will be distributed to homeowners in the five hardest-hit housing markets: California, Arizona, Florida, Nevada and Michigan.

Few states have been as hard hit as California when it comes to the real estate market. Throw in record unemployment and it’s no wonder why so many consumers are struggling. We assist clients throughout the Los Angeles area as they put a stop to the harassment of creditors and bill collectors and seize control of their lives again.

For many, a Chapter 7 filing is the best option. Sometimes known as a liquidation bankruptcy, a Chapter 7 bankruptcy filing will result in the elimination of most debt. You may even be able to keep your home or automobile, although it may make financial sense to include them in the bankruptcy. These are options you can discuss with us during your free consultation. In other cases, a Chapter 13 filing may make the most sense and will provide a consumer with the time and space necessary to establish a repayment plan and satisfy debts with little or no disruption to their lives.

Aside from unemployment and foreclosures, other leading causes of bankruptcy filings include divorce, medical bills and credit card debt.

The Shakoori Law Group, a law firm dedicated to bankruptcy, debt collection defense and consumer protection, can be reached at (877) 529-2188.

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