On February 9, 2010, California-based U.S. Senate candidate Carly Fiorina said that the state should consider declaring bankruptcy, suggesting that this action would help the government fix its budget woes. Although federal law prohibits a state from declaring bankruptcy, the former CEO of Hewlett-Packard went on to suggest that a measure comparable to bankruptcy would be a creative solution to the state's extreme financial strains in education, infrastructure, jobs, health care and other critical areas.
No matter what your political affiliations, there are thousands of Modesto residents who can relate to the state's looming debts and financial crises on an individual level. They are feeling the tension of job loss, foreclosure, credit card debt and dramatic interest rates hikes across the board. In these situations, bankruptcy becomes a plausible option for many men and women in Modesto.
Bankruptcy can help you reduce (Chapter 13) or eliminate (Chapter 7) most debt to wipe the slate clean. As the economy is slow to turn around, more people are considering bankruptcy as a way to repair severely damaged credit, reduce overall debt and end harassing calls, repossessions and garnishments by creditors. As a matter of fact, the U.S. Bankruptcy Court's Eastern Division of California office cites that 265 claims for Chapter 7 bankruptcy were filed in January 2010 in the Modesto area alone. If that number remains consistent over this coming year, it will be equal to nearly 2% of the city's population.
Bankruptcy can help many people get out of challenging financial situations. It can also give options to people who feel they're under a mountain of debt and collections. A Modesto bankruptcy lawyer can advise you on your options.