WHEN debts spiral out of control, bankruptcy can become an invaluable financial recovery tool in getting you back on the right track. While it’s not for everyone, close to a million people every year find it to be their only hope of getting a fresh financial start.

Debt problems can be the result of unemployment, reduction in income, disability, divorce, or in some cases, poor financial decisions. A financial crisis can happen to anyone at any time. No one is exempt. Bankruptcy is a fact of life.  Without it, people with serious debt problems will remain stuck where they are, unable to move on with their lives.  Living with stress every day caused by the burden of debt is a horrible way to live. Bankruptcy can offer hope when the future looks bleak.

Because of eligibility requirements for the type of relief being sought, some people will qualify for Chapter 7 to completely wipe out their debts. Others may have no choice but to file Chapter 13 and pay their creditors over a 3-5 year period. Much of it depends on your income and your assets.  You also need to take into consideration your purpose in seeking debt relief. 

Chapter 7 is not possible for those who have received a discharge of debts under Chapter 7 within the last eight years or Chapter 13 within the last six years. You may also not be able to file if you were denied a Chapter 7 or Chapter 13 bankruptcy within the previous 180 days by court order. Your eligibility for Chapter 7 bankruptcy may also be in serious jeopardy if the court believes you are guilty of defrauding your creditors. Among other actions, this can include transferring assets to friends or relatives in an attempt to hide them from creditors or the bankruptcy court, as well as purchasing luxury items with the knowledge that you couldn’t possibly make the required payments.

Chapter 13 can be the most effective way to consolidate all your debts into one low monthly payment that you can afford.  In a lot of cases, most debts are only paid a small percentage of the actual amount owed, resulting in significant reduction- a reduction of 50% or more is not unusual. 

With reduced debt payments every month, people who are struggling financially are able to manage their finances better by making sure that they have enough money left over for basic necessities before paying any of their creditors.

If you need help in finding a solution to your debt problems, we can help you figure out your options. Please call Toll-Free 1-866-477-7772 to schedule a consultation and I will personally evaluate your case. 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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