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Alternatives to Bankruptcy

Alternatives to Bankruptcy

What Bankruptcy Alternatives Are Available in California?

Many people wait too long to seek legal counsel when they are falling into overwhelming debt. In order to avoid bankruptcy, you should discuss your options with Peter Rasla & Associates, P.L.C. as soon as you believe that you might be nearing serious financial troubles. The sooner you act, the sooner you will be back in control of your future stability.


Consult an Irvine bankruptcy lawyer today to discover your bankruptcy alternatives. We offer free case evaluations.


Short Sales to Flip Upside-Down Mortgages

When the amount you owe on your mortgage is less than the amount your property is worth on the real estate market, the financial stress can be unbearable. With professional assistance, you can move to have your home sold in a short sale, which allows it to be sold at the highest price possible, not necessarily its real value.

By completing a short sale, you stand a greater chance at breaking even after selling your property or possibly making a profit. Furthermore, California is a “no recourse” state, meaning that creditors cannot pursue legal action against you after you sell your property in a short sale.

Control Your Debt with Credit Counseling

For so many people slipping into debt and facing bankruptcy, many of their issues can be traced directly to unfamiliarity with finances. By speaking to a professional credit counselor, you can receive a basic yet critical education in:

  • Budgeting
  • Establishing credit
  • Understanding and cleaning your credit score
  • Prioritizing expenditures
  • Managing savings accounts for unexpected problems

Start Over With Strategic Default

If you cannot stand the thought of putting a huge portion of your income into a mortgage that might never give you a return, you may want to walk away from your real estate altogether. Known as a strategic default, homeowner’s can notify their bank they no longer can afford their home and that it should be foreclosed.

Although you are effectively surrendering your property, it will take the bank some time to prepare the foreclosure. You can use that time to save up money that used to go into futile mortgage payments.


No matter the solution best fitting your financial situation, you should work with a bankruptcy lawyer from Peter Rasla & Associates, P.L.C. Start today with a no-cost, no-obligation case evaluation.