CONTRARY to what others may think, the majority of people who file for bankruptcy are honest, hard working people who simply need to get a fresh financial start. Because life is not perfect, there are times when we are so way in over our heads in debt that filing for debt relief becomes unavoidable. Filing for bankruptcy is NOT a crime. If it was, our Congress would not have passed laws that allow people to do it. Our bankruptcy laws, although they have changed to keep up with the changing times, have been with us for many decades and it is safe to assume that they will always be an important part of our legal system.
The “fresh start” concept of Bankruptcy is based on the idea of forgiveness. The honest debtor who either has limited or no resources to pay back creditors is given a chance to start a new life free from the burden of debts. If you’ve ever been in a situation in your life where you have fallen behind on debts and you are being harassed by creditors day and night, you know what I mean. And although some creditors may agree to work with you while you’re going through a time of temporary financial hardship, in most cases the time that they give you is too short to be of any real help. And once you start falling behind, it gets harder and harder to catch up with each passing month because your bills begin to “snowball” in a very short period of time. Some people erroneously believe that even if they fall 60-90 days behind in debt payments that they will retain their good credit standing with creditors. Remember that once late payments are recorded on your credit report, whether 30, 60, 90 or more days being late, that negative information stays on your credit report for 7 years from the date last reported.
Now, why is Bankruptcy only for the “honest” debtor? Our bankruptcy laws are only for the honest debtor because the laws were not enacted for those individuals who intentionally get into debt with no intention of repaying creditors. In other words, our laws were not designed to encourage or condone fraudulent conduct. When someone knowingly borrows money with the intent to deceive a creditor and thereafter attempts to discharge the debt by filing for Bankruptcy, it would be unfair to discharge the debt at the creditor’s expense and allow the debtor’s conduct to go unpunished. That is why there are “exceptions to discharge” in the Bankruptcy Code under which a debt obtained by fraud may be classified. The most common complaint filed by a creditor against a debtor in Bankruptcy Court is one alleging fraud. When a debt is declared non-dischargeable based on fraud in an adversary proceeding, the debt survives the bankruptcy and the creditor obtains a judgment allowing the creditor to pursue the debtor even after bankruptcy. But the creditor bears the burden of proving the elements of fraud. In other words, as in any court of law, you are “innocent until proven guilty”. A knowledgeable bankruptcy attorney would be able to advise the debtor if such scenario is likely before the case is even filed.
Filing for bankruptcy protection can help you protect your home, car, bank account and other assets. In a Chapter 13 debt consolidation, even non-exempt assets can be protected as long as a fair plan is feasible to pay debts over 3-5 years. And if all or almost all of your debts are credit card debts, you can pay 0% interest, reduce your monthly payment to a very low amount (in a lot of cases, lower than 50% of what you are currently paying) and get out of debt in as short as 3 years. Filing for bankruptcy protection can also stop foreclosure on your home or other real property, stop wage garnishments, bank levies and stop even the IRS if you owe back taxes. By consulting with a knowledgeable bankruptcy attorney, you may find out about options you didn’t even think you had.
So if you find yourself in a tight financial situation after being laid off from a job, being sick, going through a divorce, a failed business, a family or personal emergency costing a lot of money, or any other situation that was beyond your control, don’t lose hope and find out if bankruptcy can help you get the fresh start that you need. To schedule an appointment with our office, please call TOLL FREE 1-866-477-7772. We have offices in Glendale, Cerritos, West Covina 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 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.
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