THERE are times in life when we’re sometimes caught unprepared for what we have to do in order to deal with an ongoing problem that simply will not go away. The problem is there before you sleep at night and it’s still there when you wake up in the morning. One of these problems might be having to face the reality that you have no other choice but to file bankruptcy in order to get out of debt.
No one ever wakes up one day and just decides that they want to file bankruptcy. Most of the time, it is a conclusion that is reached after a long process of trying, failing, pondering, trying, failing again and a realization that something else needs to be done. A lot of people also get into a “paralysis of analysis” where they are simply overthinking their situation to the point that they won’t do anything about I because they’re so afraid that things might go wrong and they have a thousand questions in their head. So their problems linger when the solution that they need is right under their noses.
This could happen to someone who knows that bankruptcy is their only way out but months or years go by and they do nothing, thereby delaying the inevitable. In the process, they use up what little savings they have and deplete all their assets including retirement plans, investments, etc. In the end, after they have lost everything, they finally realize that they need to file bankruptcy, anyway. If they had done a bit more planning and taken action sooner, they most likely would have been able to save their money and other assets instead of trying to chip away slowly at the big mountain of debt that just won’t move.
Please don’t get me wrong. Bankruptcy is NOT the same for everyone because every situation is different. There is no perfect answer as to when you should file bankruptcy because it depends on many factors that should be considered. There are issues regarding income, property, assets, etc.
Some people try to file bankruptcy on their own to save money or they listen to advice from family members or friends who are not attorneys and who do not understand the legal aspects of their situation. So they end up making costly mistakes that could have been avoided if they had proper legal representation. Don’t make this mistake. It would better for you to spend money on an attorney instead of ruining what could be your one and only chance to get a fresh financial start because you don’t know what the heck you’re doing. This is especially true if you have a home or other assets that might be at risk.
The other important decision to make is choosing which type of bankruptcy to file. The answer, again, depends on a lot of factors including the objective that you are trying to achieve. Some people will be better off just wiping out their debts and starting over through Chapter 7 while others may be better off in a Chapter 13 repayment plan. If you are unsure which one is right for you, you should consult with an experienced bankruptcy attorney and make sure that you understand exactly what you are getting into before committing to action.
Sometimes, foolish pride stops people from doing what is necessary to prevent themselves and their families from further slipping into the big financial hole they find themselves in. They have heard that bankruptcy is “shameful” and that by filing bankruptcy, they are losing their dignity.
Nothing could be further from the truth. In my opinion, it is more shameful to continue harassing your family and friends for loans just so you could pay your bills for another month. And then when the following month rolls around, you’re broke again and have no clue where to get it to satisfy your creditors. If you are in this situation right now, what will it take for you to finally become so sick and tired of this same old problem every single month that you finally decide to do something about it? Sorry to be too blunt but sometimes the truth hurts. I see a lot of people fall into the payday loan trap for this very reason. Recently, I had a client with 18 payday loans! The interest rates on these loans are often more than 1000% and it is worse than being robbed at gunpoint. People sometimes get stuck in a vicious cycle of borrowing because they are too proud to admit to themselves that they need help and that they can no longer solve their debt problems on their own.
For the last 20 years, I’ve been helping people and business owners get out of debt. If you are in debt and have no clue what you should do next in order to change your situation for the better, I offer a free consultation. Call my office at 866-477-7772 for more information. I 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.