Asian Journal- The Filipino-American Community Newspaper

ARE you struggling with debt problems and have thought about filing for bankruptcy but are unsure if it’s the best option for you? Over the last 12 years, I have counseled and helped thousands of individuals in debt. From what I’ve seen, most people suffer for years in debt when they could have obtained relief sooner if they just took the time to find out what bankruptcy was really all about. Oftentimes, these people listen to advice given by well-meaning family and friends but in so doing, only make their situation worse instead of better. Why? Because most of the time, the advice they get is based on misconceptions about bankruptcy. Relying on incorrect information can be disastrous to your financial health.

Let me get one thing straight: If you are currently struggling with debt and one or both of the following statements are true- (a) your total liabilities exceed your total assets, (b) you cannot meet your financial obligations as they become due- you are ALREADY deemed insolvent or bankrupt. Now, you may be in denial about it. You may refuse to accept this reality. But you will never get anywhere with your debt problems unless you accept things AS THEY ARE, not as you wish they had been. You need to wake up and smell the coffee.

These are some of the misconceptions about bankruptcy that I’ve seen that have stopped people from taking action to turn their situation around for the better:

Filing bankruptcy means that you’ve failed. FALSE- Studies show that most bankruptcy filings are a result of circumstances beyond people’s control. Sickness, disability, unemployment, divorce, death- These events can happen to anyone at any time and when they do, there is often a disruption in income which could lead to bankruptcy.

Filing bankruptcy can hurt your immigration status or your application for citizenship. FALSE- Filing for bankruptcy is not a crime and is actually a legal right that is protected by law for people who qualify. It will not affect your immigration status or your citizenship application.

You must be behind in all your bills before you can file bankruptcy. FALSE- If you can see that you’re headed to debt trouble, do not wait until your situation becomes a financial emergency. By filing sooner, you can actually avoid the stress of dealing with creditor calls, lawsuits, wage garnishments and other collection actions.

My credit will be ruined forever and I will never be able to buy a house or obtain credit in the future. FALSE- Although a bankruptcy can stay on your record for 7-10 years, the truth is that most people can rebuild credit in only 2-4 years. A lot of people in debt also already have low credit scores due to late payments, high debt amounts, etc. and they are actually better of filing for bankruptcy so they can start fresh again and rebuild their credit.

If you are drowning in debt, don’t lose hope. What you need to do is to find out what your options are so you can do something positive about your situation instead of doing nothing. Call Toll-Free 1-866-477-7772 to schedule a free office consultation. 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 over 4,000 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.

( www.asianjournal.com )

( Published October 21, 2009 in Asian Journal Los Angeles p. B3 )