WHEN you are facing money troubles, sometimes bankruptcy can be the quickest and best way to get out of debt and get immediate relief from stress and anxiety.
But is it really worth it?
If you are facing a lawsuit, wage garnishment or foreclosure, you may not have a choice to file bankruptcy right away in order to protect yourself. But most of the time, people use bankruptcy only as their last resort.
That means that as much as possible, people want to avoid bankruptcy. Most of the time, it’s because they have heard a lot of bad things about it and they are afraid that it might just make their problems worse.
But this is completely false. Bankruptcy often allows you to keep things that you would otherwise lose unless you act quickly. How? Bankruptcy puts a stop to all collection activities against you the moment that you file.
If you have been sued, the lawsuit will be dismissed. If you have a pending wage garnishment, it will immediately stop. If your car is about to be repossessed or your home foreclosed, filing bankruptcy will delay everything because the creditor now needs court permission in order to proceed.
Some people don’t have any of the above problems but they are just sick and tired of struggling in debt and they are looking for a way out. They feel suffocated in their situation and they feel hopeless about their future when they realize that there is simply no way they could pay back what they have borrowed.
If you are living paycheck to paycheck with no savings, it’s even worse. Every time you have an unexpected expense such as a dental bill, new tires for your car, etc. you may have no other choice but to borrow again just to pay for those things.
So it becomes an endless cycle of borrowing and you simply sink into a deeper financial hole every month. How do you get out? Do the advantages of filing bankruptcy outweigh the disadvantages?
Most people are worried about their credit although most people who are not paying their bills already have a tarnished credit rating. Others have what they may consider “great credit” but they owe too much that no one will loan them any more money if they needed it regardless of how high their credit score is.
I tell my clients that when filing bankruptcy, you need to look at the bigger picture rather than just focusing on your current situation. Look at the long-term benefits rather than the short-term sacrifices that you may have to make.
In the end, whether filing bankruptcy was “worth it or not” will be determined by the changes it can make in your life. The decisions you make today will determine where you will be five or 10 years from now. Decide wisely.
To schedule a free consultation with me so we can go over all your legal options, 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.