Asian Journal- The Filipino-American Community Newspaper

HAVE recent changes in the economy or the real estate market put your back against the wall with no way out? Are you struggling to make sense out of the financial mess that you are currently in and have thought of filing bankruptcy as a possible solution to your financial crisis? You are not alone.

It has now been more than 4 years since Congress passed more restrictive bankruptcy laws. While filings did go down temporarily for a few months after October 2005, it didn’t take very long for things to change. Now we are seeing a massive increase in bankruptcy filings again. Why is this happening? Here’s why:

(a) The Deepening Recession And Skyrocketing Foreclosures Fueled By The Worsening Housing Market Crisis - There is no doubt that the above factors are the major culprits in the increase of bankruptcy filings. While bankruptcy doesn’t always save a property from foreclosure in every case, it may be a viable solution to qualified individuals who are desperately trying to stay in their home. If you are facing foreclosure at the moment, find out whether bankruptcy will help your situation. Currently, there is also a pending bill in Congress that may allow bankruptcy judges to force lenders to modify mortgages in the future.

(b) New Bankruptcy Laws Originally Intended To Curtail Bankruptcy Abuse Are Ineffective To Help Those In Genuine Need Of Debt Relief- According to the credit counseling agencies, so far almost 97% of people who go through the mandatory debt counseling (required by the new laws passed in 2005) are NOT in a position to pay anything AT ALL to their creditors. This means that 97% of people who elect to file bankruptcy are clearly BANKRUPT and need help. Contrary to what the proponents of bankruptcy reform said (i.e., that most people who file bankruptcy can actually afford to pay their creditors if they just wanted to), everyone is now realizing that this is not true. The fact is that people who file bankruptcy are the people who genuinely need a fresh financial start.

(c) Consumer Debt Is Once Again At An All-Time High- The average household now owes approximately $25,800 in credit card debts. Studies show that 65% of all credit card accounts are only paid the minimum required every month. With the outrageous interest rates charged by the credit card companies, people are bound to be in debt for many years, perhaps for decades in some cases. To make things worse, credit card companies have increased monthly minimum payments in most cases, making it harder for consumers to come up with more money every month just to stay current.

We are facing tough times ahead. This is not a good time to be in debt. If your debts are out of control, you may be headed for serious financial trouble. If you have already maxed out your credit cards and can’t even pay your monthly minimums, I suggest you immediately cut up all your credit cards before you get buried in debt.

If you feel trapped in your situation and don’t know what to do, maybe you should find out what your legal options are in dealing with debt problems. Your situation may look grim but there is hope and it’s not the end of the world. In some cases, bankruptcy protection may help before your problems get worse and you end up losing everything you have worked so hard for. Don’t let this happen to you. To request a free case evaluation, please call Toll-Free 1-866-477-7772 to schedule an appointment. We have offices in Glendale, Cerritos and West Covina.

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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 more than 4,000 clients in finding solutions to their debt problems. To schedule a free attorney consultation, please call Ray Bulaon Law Offices at TOLL FREE 1-866-477-7772.

( www.asianjournal.com )

( Published on May 13, 2009 in Asian Journal Los Angeles p. B2 )