Thinking of filing bankruptcy? Five questions to ask yourself

ARE you constantly worried about your finances because of debts that you can no longer afford to pay?  If you are in more debt that you can repay, you may be overwhelmed and don’t know what to do.

If you’ve tried to solve your debt problems on your own but nothing has worked up to this point, the prospect of filing bankruptcy may sound appealing. But perhaps you either don’t know enough about how bankruptcy works or have heard so many bad things about it that you don’t really know if it’s the right solution for you.

How can you tell whether bankruptcy is appropriate for your situation?

Generally speaking, the answer has to do with your ability to pay (or the lack thereof), your income, expenses, assets and the amount of your debt. You also need to look at the types of debt you have.  For example, while most debts are dischargeable in bankruptcy, there are certain types of debts which are not. For example, student loans, back child support and most taxes cannot be wiped out in bankruptcy.

Here are a few helpful questions to ask yourself to help assess whether bankruptcy may be a good idea.  The answers to these questions will not conclusively determine that you are a good candidate for bankruptcy but it is a good starting point:

1. Are you struggling to pay even the minimum payments on your credit cards and so end up paying late each time?

2. Have you started borrowing money just to be able to cover your basic living expenses such as rent or mortgage, food, gas, etc?

3. Have you lost track of how much you owe?

4. Are bill collectors calling you because you have accounts in collection?

5. Have creditors taken legal action against you (or are threatening to do so) such as filing a lawsuit, obtaining a judgment and threatening to garnish your wages or levy your bank account?

If you said “yes” to any or most of the above, you could be in a “financial danger zone” and may need to take action as soon as possible before your financial problems get worse. It may be time to face your financial reality instead of simply hoping that somehow things will just magically change.

The truth is that unlike other problems in life, debt problems usually don’t go away on their own- unless you take action. Perhaps you’ve been ignoring your pile of bills and the collection calls. But you can only do this for so long. Sooner or later, you will need to face your creditors and the consequences of your inaction.

Regardless of the cause of your present financial difficulties, what you need is a game plan to get out of debt before it cripples you.  The past is no longer of any consequence unless you let it. And if you act quickly to turn things around, you will realize later that this decision often gives you more options in the long run.

If you need some straight talk about bankruptcy and get all your questions answered, I will give you a free initial consultation so we can talk about your situation. Just call 866-477-7772 and schedule an appointment. I have offices in Glendale, Cerritos and Valencia.

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None of the information herein is intended to give legal advice for any specific situation.  Atty. Ray Bulaon has successfully helped thousands of clients in getting out of debt. For a free attorney evaluation of your situation, please call  Ray Bulaon Law Offices at  TOLL FREE 1 (866) 477-7772.   

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