To people who are considering bankruptcy but are unsure

IF you are struggling with debt problems and are starting to feel hopeless about your situation because you are not getting anywhere in spite of your efforts, at what point do you consider filing bankruptcy as an option? Bankruptcy scares a lot of people, and that’s understandable because everything that they’ve heard about it from friends, family and co-workers is negative. But is bankruptcy really all that bad?

Well, the truth is that most people don’t even understand it. The law says that bankruptcy is nothing more than a fresh financial start when you are no longer able to help yourself.

Of course, this is not what the bill collectors want you to think. They want you to think that this is the ‘worst’ thing that you can ever do and that it will ruin your chances of ever buying a house or getting credit again. These are the lies that they want you to believe because they know that once you file bankruptcy, they can no longer get any of your money.

From a legal standpoint, here are a few helpful questions you should be asking to help you assess whether it’s time for you to consider filing for bankruptcy: (1) Are you struggling to pay even the minimum payments on your credit cards? (2) Have you started borrowing money just to be able to cover your basic living expenses such as rent or mortgage, food, gas, etc? (3) Have you lost track of how much you owe? (4) Are bill collectors calling you because you have accounts in collection? (5) Have creditors taken legal action against you such as filing a lawsuit, obtained a judgment and threatening to garnish your wages or levy your bank account?

If you said “yes” to any or most of the above, you could be in a financial danger zone and I suggest that you take immediate action before your situation gets worse. If you own a home and have assets that may be at risk if you were sued by your creditors, it is in your best interest to find out how you can protect what you have from creditors who are trying to collect from you. A lawsuit can lead to a judgment against you- and it can attach as a lien to your home which makes the debt secured while also earning interest. The lien may stop you from refinancing your mortgage and could be a hindrance in trying to sell your home unless the underlying debt is paid in full. A judgment can also be enforced by garnishing your wages and attaching your bank accounts. This is not what you want, is it? So why wait for the worst to happen if there is something you can do right now to prevent all of the above from happening.

Never ignore your debts because they could come back and haunt you when you least expect them. I’ve seen this happen many, many times. At the very least, you should consult with an experienced attorney so you can plan in advance what you should do if your financial situation gets worse. I believe that bankruptcy should be a last resort and that you need to exhaust all debt relief options before resorting to it. But I also believe that a lot of people put off the decision to file bankruptcy for too long that they needlessly suffer in debt when they could have acted sooner to rebuild their finances and their life.

Since 1997, I have helped thousands of clients get out of debt to live more financially secure lives. Let me help you determine if bankruptcy is right for your situation or if other options are available for you to avoid it.

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NOTE: Due to the current lockdown order caused by COVID-19, 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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