INDIVIDUALS who have accumulated excessive debt are often left to ponder whether they should file bankruptcy in order to get out of debt. Sometimes, these people feel that somehow, they’ve lost, failed, or that they will never have a chance to rebuild their credit again. Because we are living in a society where having a lot of credit cards has become the norm, they can’t imagine themselves without credit cards.
Of course, the truth is that credit cards only give us a sense of false security. Why? Because these plastic cards create the illusion of having money that you really don’t have in your bank account, that’s why. That is exactly how most people end up spending their money before they even earn it. And they wonder why they are broke every pay day no matter how hard they work.
If you find yourself over-extended and have tried living on a budget, doing financial counseling, etc. and still have not made great progress in repaying your debts, I applaud you at least for your efforts. However, your plan must be a realistic one or you will simply end up getting frustrated. When you have incurred more debt that you can possibly repay, perhaps filing bankruptcy may be the only way to get debt relief. And in most cases, it’s not as complicated and as bad as what your creditors would like you to believe. As a matter of fact, most of the 1.5 million people who file for bankruptcy in the United States do just fine. They rebuild their credit after a few years and a lot of them are able buy homes just like everyone else. Filing bankruptcy doesn’t have to be the end of the world. It is only a new beginning for those who really need it.
Suppose you have attempted to negotiate with your creditors to work out an affordable repayment plan but they simply would not work with you? Although you’ve told them repeatedly that you cannot afford to pay the entire amount, they refuse to cooperate and continue to threaten you with filing a lawsuit, obtaining a judgment and perhaps even garnishing your wages (which you know you cannot afford). What else can you do? This may leave you no other option but to seek debt relief through our federal bankruptcy laws.
Bankruptcy laws were changed in 2005 to encourage people with regular income to pay at least a portion of their debts. But those with insufficient income and meet all other legal requirements are still allowed to wipe out or discharge their debts. Every case is different and must be evaluated by an experienced bankruptcy attorney who can discuss with you all available options. Remember that timing is also often critical when filing a case. In some cases, it may make sense to hold off filing while in other cases, it is best to file right away.
If you are drowning in debt, don’t wait until things get worse or you may regret not having acted sooner. Waiting until the last minute also doesn’t give you enough time that you need to find a good attorney who can protect your interests. Remember that like doctors, not all lawyers are the same. You need a competent legal representative who understands the debt collection and bankruptcy laws and has had the experience of handling a lot of cases like yours. Hiring the wrong attorney can only make your situation worse.
For a free office consultation, please call Toll-Free 1-866-477-7772. We have offices in Glendale, Cerritos, West Covina and Valencia.
* * *
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.
| < Prev | Next > |
|---|
