Affordable Chapter 7 Bankruptcy in Santa Monica, California and What It Buys You

The math for a Santa Monica, California household

Here is an example with made-up round numbers. Say you owe $15,000 on credit cards at 24% interest. That is about $300 a month in interest before you pay down a single dollar. For a Santa Monica, California household at the city's median income, $300 is about 3% of a month's income before taxes, going to interest alone.

A simple Chapter 7 with us costs about $1,538 in attorney and court fees. In this example, that is about five months of interest payments, and the balance is gone at the end of the case.

Why Santa Monica, California filers choose Chapter 7

If you pay only the minimum, much of each payment goes to interest, and the balance can take years to fall. A consolidation loan rolls the cards into one bill, but the total you owe stays the same. A debt settlement plan can take years, hurt your credit along the way, and leave forgiven debt that may be taxed. Chapter 7 can wipe out qualifying debts in one case for a flat fee from $1,200 plus the court fee. In a city where the median owner home is worth about $1,755,500, many renters are saving for a move, and card payments slow that down.