FILING bankruptcy can be very stressful and uncomfortable for people who are facing a financial crisis for the first time in their lives. But a lot of the anxiety involved can be alleviated by simply understanding the process and keeping things in perspective. Oftentimes, people are so focused on their current financial problems that they lose sight of the big picture.
If you are seriously drowning in debt, I am sure chances are that your problems did not happen overnight. If so, then it only makes sense that any solution you choose to implement to correct the situation may also take time. When appropriate for your situation, filing for bankruptcy protection can accelerate the process of financial recovery so this can be your first step.
Creditors will often try to make you believe that filing for bankruptcy somehow makes you a failure and that you are a bad person for doing so. These characterizations are simply ridiculous and they should not stop you from doing what is necessary to change your situation for the better. Your creditors know that once you file, they will no longer be able to call and harass you and so they will tell you all kinds of things in order to humiliate you and discourage you from filing.
Once you are able to regain control of your finances by either wiping debts you can no longer pay (Chapter 7) or paying creditors over time (3-5 years under Chapter 13), bankruptcy relief helps you break out of the seemingly never-ending cycle of debt. Whether your problems were caused by factors beyond your control or simply a result of poor financial planning, bankruptcy can give you a fresh start by putting your debt problems behind you once and for all. Filing bankruptcy is not financial failure. It is nothing more than financial planning so that you can have a better future for you and your family. Don’t let your current situation make you lose sight of your long-term financial goals.
Some people are so buried in debt that they have no other way of repaying what they owe. They live from paycheck to paycheck and have zero savings in bank. They are literally only one paycheck away from bankruptcy. You need a financial plan if you are going to retire some day. This could be as simple as participating in your company’s 401K plan if you are employed or maybe putting money into an IRA if you are self-employed. A lot of people who come to me for bankruptcy help are broke every month due to excessive indebtedness that they can’t even put aside a couple of hundred dollars a month for retirement. How can they when they’re simply in “survival mode” month after month? If you don’t have a financial plan in place, who is going to support you when the day comes that you can no longer work? I hope you’re not simply counting on the government to support you. Experts say that by the time most of us retire, social security may not even be around anymore.
If your current debt problems were caused by your failure to set financial priorities, you may feel guilty and embarrassed about having to file bankruptcy. It is normal to feel this way but what’s important now is that you’ve recognized your mistakes and that you’re taking steps to improve your financial situation. As one writer said, “Success comes from good judgment. Good judgment usually comes from experience. And experience usually comes from bad judgment.” There are lessons to be learned from bankruptcy so make sure that you don’t miss them. If you do, you are bound to repeat them again in the future.
Of course, bankruptcy is not for everyone and there are important factors to consider in every case. To schedule a free evaluation of your case, please call Toll-Free 1-866-477-7772. We have offices in Glendale, 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.
