Pandemic debt relief: Is bankruptcy right for you?

“It is a misconception that ‘once you file bankruptcy, you will automatically lose everything.’ The truth is that most people keep everything they have (homes, cars, bank accounts, retirement plans, etc.) and they lose nothing at all.”

PEOPLE with overwhelming debt problems during this difficult time are asking a lot of questions. Are you scared of being sued and having creditors getting judgments against you and garnishing your wages and levying your bank account? What would happen to your home or business if you fall behind on your debt obligations and are unable to catch up? What is the worst that creditors can do to you? Are you afraid of losing what little you have and wonder how you are going to survive if you can’t even pay for life’s basic necessities like rent, mortgage, food, transportation, etc., let alone pay your bills?

Making the right decisions is critical to your financial survival when facing debt problems. No one ever wants to be in this situation, and it could be one of the most challenging situations you’ll ever face in your life. But don’t despair.

At one time or another, everyone experiences financial challenges in their lives. At this time, there are milling of people who have lost their jobs or have had their hours cut due to the virus. Some people who thought they were just temporarily laid off during the lock down are finding out that they don’t even have a job to go back to. It’s not your fault because it is not something that you have caused.

During times of financial crisis, millions of people have looked at bankruptcy as a way of getting debt relief. And in most cases, had they not filed for bankruptcy, there would have been no other way for them to start a new life free from the burden of debt.

You have rights under federal law to file bankruptcy and get immediate relief from debt.

Although you may have heard bad things about bankruptcy, it is really is nothing more than a legal remedy that allows you to regain control of your finances so that you can get back on your feet as quickly as possible. Of course, it is not the answer to all financial problems but when appropriate for your situation, it may be the only way for you to get out of the mess you’re currently in.

Briefly, Chapter 7 allows you to cancel or discharge your debts but in return, you must give up whatever non-exempt assets you may have. The good news is that most people don’t have much and whatever little they have; they are often protected by the exemption laws in bankruptcy. So, it is a misconception that “once you file bankruptcy, you will automatically lose everything.” The truth is that most people keep everything they have (homes, cars, bank accounts, retirement plans, etc.) and they lose nothing at all.

Chapter 13, on the other hand, is a debt reorganization or debt consolidation plan. The court requires you to submit all your income information as well as a monthly budget to assess your ability to pay. Your Chapter 13 plan payments will be based on the surplus income as determined by the Court. Chapter 13 allows you to keep valuable property such as your home or car (although you were behind on your mortgage and car payments at the time of filing) and will stop foreclosure and repossession immediately on the day your case is filed. Credit card debts are included in your monthly payment under Chapter 13 and, in most cases, they can be significantly reduced or even totally eliminated.

Being in debt is not the end of the world. There are options available and the sooner you act, the sooner you will be on your way to getting the relief that you need badly. If you have not read my book, “What You Need to Know Before Filing Bankruptcy”, you can download it free of charge at

For a free evaluation of your case, please call our office at Toll-Free 1-866-477-7772 to schedule a free consultation. Let us help you.


NOTE: Due to COVID-19 pandemic, I am offering free consultations BY PHONE to anyone who needs help in dealing with their debt problems.

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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 5,000 clients in getting out of debt. For a free attorney evaluation of your situation, please call RJB Law Offices at TOLL FREE 1-866-477-7772.

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