DECIDING if bankruptcy is right for you is not always easy. But sometimes, the hole you’ve dug up is too deep that there is no other way out. Bill collectors are harassing you. Maybe they’re already threatening to take you to court, garnish your wages and take everything you’ve got. Maybe you can’t even sleep at night asking yourself: “What should I do to solve my debt problems and protect myself and my family?”
The answer, of course, doesn’t always come quick and easy. Most people will postpone making a decision until they have their backs into a corner and they feel like the walls are caving in. If you are in this situation, I know how you feel. At what point does it make sense to file bankruptcy and get legal protection? If your financial situation is causing you a lot of stress and worries, perhaps bankruptcy is the best solution for your mental well-being if you’re already doing your best but it’s still not good enough.
Of course, bankruptcy is not always the best solution. Not everyone who faces debt problems should file for bankruptcy because not all cases are the same. But when advisable for your situation, it could be exactly what you need to put your problems behind you and move on.
Filing bankruptcy immediately stops collection actions against you and your property. That means no more collection calls, lawsuits, wage garnishments and no more sheriffs at your door. For the first time in a long while, you can finally breathe better and feel like a human being again. In Chapter 7, credit card debts, personal loans, medical bills and other unsecured debts are erased completely. Although in Chapter 7, non-exempt property can be taken to pay creditors, this is very rare because most Chapter 7 cases are no-asset cases. If your case is such, you lose nothing but your debts and you get to keep your home, automobile, bank accounts, retirement plans, etc.
In Chapter 13, you agree to repay all or a portion of your debts over three to five years. In most cases, you can cut your current credit card payments in half or even more, depending on your income and expenses. So, rather than struggling to pay your debts and the ridiculous interest rates that the credit card companies are charging you, you can be out of debt in a much shorter period of time while paying zero percent interest on your credit cards. Did you know that most people will never get out of debt with the 22-29 percent interest that they are paying on their credit cards? And after you’ve paid your debts, most likely you’ve paid your creditors more than twice your debt amounts in interest alone. Could this be the reason why a lot of people retire broke? Instead of saving the money for their retirement, they give the money to their bank and their creditors in interest charges.
If you are facing possible loss of your home through foreclosure, you need to find out what your legal options are under Chapter 13. If you have fallen behind on your mortgage payments and can’t afford to pay what the bank is asking you to bring your account current, Chapter 13 will allow you to pay back the amount in arrears for as long as 5 years. Foreclosure will stop on the day that your case is filed and you can start making your regular mortgage payments without worrying about losing your home. If you need to apply for a loan modification to lower your mortgage payments, you can also do this while you are in Chapter 13.
If you are in debt and feel like there is no way out, I would like to help you figure out your best solution. For a free consultation, call my office at Toll-Free 1-866-477-7772 so I can carefully evaluate your case. I have offices in Glendale, Cerritos and Valencia. n
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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.