Atty. Raymond Bulaon

What is your personal financial recovery plan?

Tuesday, 15 September 2009 20:20 Atty. Raymond Bulaon

ARE you and your family personally affected by the current economy and the worsening foreclosure crisis? Worried about your job and your income as you continue to hear about the rising unemployment rate and massive layoffs everywhere? If you are in debt, things may even be worse for you as you struggle living paycheck to paycheck and barely having enough to keep the lights on and to put food on the table. As we go through turbulent economic times, a lot of people are in a state of panic and anxiety as they face the unknown future. Are you one of these people?

Experts predict that it may take a while for the economy to improve. As a bankruptcy attorney, the questions that I am often asked are: "Will my family’s increasing debt load result in bankruptcy?" "What happens if I lose my home in foreclosure?" A lot of people are overwhelmed with the difficult choices and situations that they face. If you are going through a bankruptcy or foreclosure, you may be feeling a lot of anxiety and depression at the moment. But perhaps instead of being paralyzed by fear, the better question to ask is: What’s your personal financial recovery plan?

Should you settle with creditors or file bankruptcy?

Tuesday, 08 September 2009 21:49 Atty. Raymond Bulaon

IF YOU’VE been trying to figure out a way to get out of debt without declaring bankruptcy, perhaps the idea of simply negotiating a settlement with creditors has crossed your mind. Maybe you’re thinking that there’s a way to reduce your expenses, increase your income and use some of the money you’ve saved up to accomplish this. Is this really the smart thing to do if bankruptcy can be avoided? Well, let me share this story.

Recently, a gentleman came to my office who tried to do exactly the above. He works as a nurse and makes pretty decent income. He had about $20,000 in a savings account and was about $30,000 in debt, all credit cards. Most of his accounts were already in collections so a few creditors have already filed a lawsuit. Not wanting to file bankruptcy, he contacted a few of his creditors and started paying off some of the debts via reduced settlement. Since most of his accounts were already seriously delinquent, some of the creditors were willing to accept less than the full amount owed as long as he was paying in cash. If he were to file bankruptcy, these creditors would get nothing so they thought it was in their best interests to take what they were offered.

Are you feeling trapped by too much debt?

Tuesday, 01 September 2009 21:57 Atty. Raymond Bulaon

NO one ever wants to get into debt but at some point in your life, you may face a debt crisis. The reason is irrelevant. The problem may be self-caused or can be a result of circumstances beyond your control. Whatever the case may be, you need help and you need it fast. Oftentimes, options can be confusing so a lot of people end up doing nothing. This makes things even worse. Don’t let this happen to you.

First of all, let me say this: Having debts does not make you a bad person. Things happen. Most people do their best with the resources that they have but sometimes, it’s just not enough. Generally, I find that most people find it very uncomfortable to talk about the subject of money and debt so they tend to deal with their problems on their own.

Does filing bankruptcy make sense in your situation?

Thursday, 27 August 2009 22:11 Atty. Raymond Bulaon

When no other means of debt relief are available, filing for bankruptcy may be the only way to get out of debt for most people. The good news is that the old stigma associated with filing bankruptcy no longer really exists and most people who file bankruptcy usually rebuild credit very successfully in only 2-3 years. Of course, this doesn’t mean that you should take the decision to file lightly. Filing bankruptcy is still a very serious decision and is one that must be made with the expert assistance of a knowledgeable and experienced attorney. When done correctly, however, it could be the best decision you ever made to turn a hopeless situation around.

There are 2 basic types of bankruptcy for individuals. Chapter 7 bankruptcy allows you discharge all outstanding debts that you can no longer pay with the exception of certain types of debts such as student loans, taxes and child support. The process begins by filing a "petition for relief" with the bankruptcy court. Once the petition is filed, creditors are automatically prohibited from pursuing or continuing any legal action against the debtor or the debtor’s property unless they get permission from the court. Thus, collection calls, lawsuits, wage garnishments, repossessions and foreclosure are stopped immediately.

Loan modification mistakes to avoid

Sunday, 23 August 2009 18:15 Atty. Raymond Bulaon

LOAN Modification continues to be the hottest thing these days as distressed homeowners try to save their home from foreclosure. If you are about to apply for a loan modification with your lender, perhaps you’re wondering what your chances are of getting approved. What if the lender turns you down? Is there enough time to do it before your property is sold at a foreclosure sale? If you are trying to do it on your own without professional help, you may be at a disadvantage in dealing with your lender if you don’t understand the process and don’t know what you are doing.

Most people who work from 9-5 also find it difficult to even communicate with their lender because the time they can commit to doing it is so limited. Doing a loan modification involves a lot of phone calls to your lender, filling out forms, analyzing financial documents, waiting on hold for long periods of time and more often than not, dealing with lender representatives who are poorly trained and just as confused as you are about the process. In other words, it could be very frustrating to a lot of people so they simply give up.

Loan modification mistakes to avoid

Wednesday, 19 August 2009 00:16 Atty. Raymond Bulaon

Debt settlement scams: More things you need to know

Sunday, 16 August 2009 18:49 Atty. Raymond Bulaon

LAST week, I wrote an article about how many consumers become victims of debt settlement scams. I think this struck a chord with a lot of readers and I have had a lot of people coming to our office attesting to the truth of what I had written. There is currently a pending bill in California aimed at providing stricter and tougher regulations for debt settlement companies to operate in this state. Of course, the purpose of the proposed legislation is to protect unsuspecting consumers who are desperate for a solution to their debt problems.

One reason many consumers hire a debt settlement company is because their debt amounts have become simply unaffordable to them and they would like to avoid bankruptcy as much as possible. They see an ad by a debt settlement company on TV, in the newspapers or on the internet and it promises to get them out of debt for "pennies on the dollar." These consumers are fed up with the fact that the credit card companies have increased their interest rates to as high as 28-30% and they realize that with these outrageous rates, they are bound to remain in debt forever. So hiring a debt settlement company looks like an attractive option. Unfortunately, for a lot of people, it becomes their worst nightmare.

Debt settlement scams: What you need to know

Wednesday, 05 August 2009 00:06 Atty. Raymond Bulaon

ARE you thinking of hiring a debt settlement company to help you get out of debt? Were you told that this was a better alternative to filing for bankruptcy? As the economy continues to decline, more and more people are turning to debt settlement companies for help in eliminating their debts. Warning: Be very careful. As a bankruptcy attorney, I have seen a lot of people who have become victims of deception and misrepresentation by unscrupulous debt settlement companies.

Don’t get me wrong, there are some debt settlement companies that are completely legitimate. However, a lot of them are also just out there to scam people. I have heard a lot of horror stories about them from people who have come to my office for advice. These fly-by-night companies misrepresent the nature of the services they are offering, don’t tell you what you need to know and are simply interested in taking your money without actually helping you. They often prey on desperate consumers who see no way out of their debt problems short of filing bankruptcy. But instead of seeing light at the end of the tunnel, a lot of their victims find themselves hitting a brick wall instead. Don’t be one of these people.

Facing foreclosure is painful but there is hope

Wednesday, 29 July 2009 09:04 Atty. Raymond Bulaon

IF YOU are one of the thousands of homeowners who have recently lost a home or other property to foreclosure, I know how you feel at the moment. Maybe you are feeling depressed, frustrated or even angry. Listen to me. It’s not the end of the world. Believe it or not, there is life after foreclosure and things are not as bad as you think. You may not see this now but trust me, like most things in life, this, too, will soon pass.

The truth is that most foreclosure victims eventually become homeowners again. But you need to have a solid plan for the future- and the time to start is now. The amount of effort you put in will determine how long it will take for you to rebuild your finances, your credit and your life.