STATISTICS show that approximately 1.5 million people file bankruptcy in the United States every year. There are different reasons for filing- unemployment, foreclosure, medical bills, overwhelming credit card debts, etc. Some of these reasons are beyond anyone’s control. But some of them are also self-caused (example: lack of planning, mismanagement of finances). No one is perfect and sometimes even the best laid plans can fail.
Bankruptcy can be a way for someone to get a fresh start when all other solutions have failed. In my years of practice as a bankruptcy attorney, I’ve seen that most people just want to do the right thing- pay their bills on time and responsibly. But often they are lured into debt by false hopes of a ‘better life’ that they could have with borrowed money- a bigger home, a nicer car, family vacations, etc. (After all, they think they deserve to have these things because they “work hard” for their money.) But that’s exactly where the problem begins. Once they start rationalizing why they ‘deserve’ to have the things that they want with no consideration given as to whether it is within their financial means to do so, often all logic goes out the window. Before they know it, they have borrowed beyond their ability to repay and they are trapped in debt.
Last week, for example, I was counseling a lady who had a $700 car payment (a luxury car) and the payment represented almost 50% of her take-home pay! When I asked what she was thinking when she bought this expensive car, she told me that she was a single person, didn’t own a home and that this car was “the only thing she had” and that she felt that she “deserved it” because she works very hard. Of course, now that the car is about to be repossessed due to late payments, she realizes what a bad choice she has made. Trust me, quickly after that new car smell is gone, reality sets in when you start dreading to receive those monthly statements.
There are lessons to be learned if you find yourself having the need to file bankruptcy due to overwhelming debt. If you don’t learn the lessons that you need to learn, you are only bound to repeat those same mistakes. Bankruptcy can be a good thing if it affords you the opportunity to put your past behind you and improve your financial future. But learn from your mistakes and promise yourself that from now on, you will be more conscious about your financial behaviors and spending habits. There is more to bankruptcy than just getting out of debt.
If you are struggling with debt, I want to help you figure out your best options. For a free consultation, call my office at Toll-Free 1 (866) 477-7772 and we will help you step by step in finding a solution that’s right for you. We have offices in Glendale, Cerritos, West Covina 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.