Deciding if bankruptcy is right for you can be one of the most important decisions you’ll ever make in your life. As much as possible, most people try to avoid it, of course. But sometimes, the hole you’ve dug up is too deep that there is no other way out. For example, perhaps you owe so much that there’s simply no way for you to ever repay your creditors. Filing bankruptcy, although not your first choice, may be a better alternative to remaining stuck in debt for the rest of your life.
The answer, of course, doesn’t always come quick and easy. Most people will postpone making a decision until they have their back into a corner and they feel like the walls are caving in. If you are in this situation, I know how you feel. At what point does it make sense to file bankruptcy and get legal protection? If your financial situation is causing you a lot of stress and worries, perhaps bankruptcy is the best solution for your mental well-being if you’re already doing your best but it’s still not good enough.
Filing bankruptcy provides immediate debt relief because it automatically stops collection actions against you and your property. That means no more collection calls, lawsuits, wage garnishments and no more sheriffs at your door. For the first time after a long while, you can finally breathe better and feel like a human being again. In Chapter 7, credit card debts, personal loans, medical bills and other unsecured debts are erased completely. Although in Chapter 7 non-exempt property can be taken to pay creditors, this is very rare because most Chapter 7 cases are no-asset cases. If your case is such, you lose nothing but your debts and you get to keep your home, automobile, bank accounts, retirement plans, etc.
In Chapter 13, you agree to repay all or a portion of your debts over 3 to 5 years. In most cases, you can cut your current credit card payments in half or even more, depending on your income and expenses. So, rather than struggling to pay your debts and the ridiculous interest rates that the credit card companies are charging you, you can be out of debt in a much shorter period of time while paying zero percent interest on your credit cards. Trust me. With the interest rates of 22-29% that the credit card companies are charging you, you are likely to be in debt for the rest of your life if all you can afford is to make minimum payments.
If filing bankruptcy makes sense for your situation, it may be the only way you will ever get a fresh financial start. If there are ways to avoid it, I can help you review your options. For a free consultation, call my office at Toll-Free 1-866-477-7772. 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.