I HEAR this all the time. People who are in debt are barely making it by living paycheck to paycheck so how can they even think about saving for the future? Are you in this situation right now? If so, you need to do something about it or you will never be able to get ahead financially.
According to a recent study, one out of five families owes more on credit cards and other unsecured debt than they have in savings. The recent recession only added to their existing debt. Some have taken money out of their retirement plans in order to avoid bankruptcy. Others continue to drain their life savings hoping that things will soon get better.
What I have learned as a bankruptcy attorney over the last 18 years is that hope is not a good plan. There is nothing wrong with hoping for the better, of course. But hoping without acting will not change anything in your life.
Yesterday, I was counseling a man who got into serious debt by borrowing from several payday loan companies. And in case you didn’t know, payday loans are the worst- they should be illegal, in my opinion. They charge people outrageous interest rates and ask for a substantial amount of their paycheck. Get one or a few of these and you will be buried in a deep financial hole in no time. You can never borrow your way out of debt. A lot of people have tried and failed. If you want to get out of debt, you need to stop borrowing and find a way to resolve your current debt situation. To do anything else is a sure path to bankruptcy.
Most people are unaware that most retirement plans (example: IRA’s and 401K plans) are 100 percent protected in bankruptcy. So if these are the only assets you have, why drain your retirement savings and leave yourself with nothing when other options to get out of debt are available? I am not suggesting that people should just take the easy way out and file bankruptcy every time they have debts that they cannot pay. In my opinion, bankruptcy should always be a last resort. But in situations where it is your only solution, you will be thankful we have federal laws in this country that can give you a new chance to rebuild your finances and your life.
Be informed about your options. Stop listening to your family and friends who know nothing about the legal aspects of your situation. It’s your life and it’s your business. They mean well, I’m sure, but they could be the worst source of legal advice when your financial future is at stake. When you’re sick, you go to a doctor. When you have legal problems, you should go to an attorney who can evaluate your case and recommend possible options. Nothing replaces professional, competent advice from an attorney who understands the laws and how they could be used for your best interests.
Since 1997, I have helped thousands of clients get out of debt in order to live more financially secure lives. Let me help you determine if bankruptcy is right for your situation or if other options are available in order for you to avoid it. Call Toll-Free 1-866-477-7772 to schedule a free office consultation. We have offices in Los Angeles, Pasadena, 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.
