Are you struggling with debt problems and have thought about filing for bankruptcy but have questions that you’re afraid to ask? Over the last 12 years, I have counseled and helped thousands of individuals in debt. From what I’ve seen, a lot of people suffer for many years in debt when they could have obtained relief sooner- simply because they have questions about bankruptcy that they are afraid to ask. Instead of asking a bankruptcy attorney, they listen to advice given by well-meaning family and friends but in so doing, only make their situation worse instead of better. Why? Because most of the time, the advice they get is based on misconceptions about bankruptcy. Relying on incorrect information can be disastrous to your financial health.
If you are currently struggling with debt and one or both of the following statements are true- (a) your total liabilities exceed your total assets OR (b) you cannot meet your financial obligations as they become due- you are ALREADY considered insolvent or bankrupt by law. Now, you may be in denial about it. You may refuse to accept this reality. But you will never get anywhere with your debt problems unless you accept things AS THEY ARE, not as you wish they had been.
Here are some of the misconceptions about bankruptcy that I’ve seen that have stopped people from taking action to turn their situation around for the better:
Filing bankruptcy means that you’ve failed. FALSE- Studies show that most bankruptcy filings are a result of circumstances beyond people’s control. Sickness, disability, unemployment, divorce and death- These events can happen to anyone at any time and when they do, there is often a disruption in income which could lead to bankruptcy.
Filing bankruptcy can hurt your immigration status, your application for citizenship or your eligibility for Social Security when you retire. FALSE- Filing for bankruptcy relief is NOT a crime- so don’t be afraid that you will be treated like a criminal if you file bankruptcy!. As a matter of fact, we have laws in this country that protect the legal rights of bankrupt individuals in need of a fresh financial start. It will not hurt your immigration status or affect your citizenship application.
You must be behind on all your bills before you can file bankruptcy. FALSE- If you can see that you’re headed to debt trouble, do not wait until your situation becomes a financial emergency. By filing sooner, you can actually avoid the stress of dealing with creditor calls, lawsuits, wage garnishments and other collection actions.
My credit will be ruined forever and I will never be able to buy a house or obtain credit in the future. FALSE- Although a bankruptcy can stay on your record for 7-10 years, the truth is that most people can rebuild credit in only 2-4 years. A lot of people in debt also already have low credit scores due to late payments, high debt amounts, etc. and they are actually better of filing for bankruptcy so they can start fresh again and rebuild their credit.
If you are drowning in debt, don’t lose hope. What you need to do is to find out what your options are so you can do something positive about your situation instead of doing nothing. For a free office consultation, 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.