I often get asked whether filing for bankruptcy can be avoided in finding a solution to debt problems. I usually tell people that filing for bankruptcy should be a last resort, not a first option. Before filing for bankruptcy, you should weigh the advantages against the disadvantages. How will filing change your financial situation and your immediate future? Can assets be protected? What type of relief from debt can be gained by filing? Can bankruptcy be avoided?
In dealing with debt problems, usually, there are no magical solutions. And while a rich relative might die suddenly and leave you a fortune, don’t count on it. What about winning the lottery? Did you know that you have a better chance of being struck by lightning than winning the lottery? Sorry to disappoint you but its true. Until that day comes, you have to take the initiative in finding a solution to your debt problems.
Here are some interesting facts:
Let’s assume you had a $10,900 balance on your credit cards and paid the required 2% minimum every month (about $218).
If you didn’t have your credit card payment of $218 per month (in this example), you could be investing this same amount for the next 25 years. At 12% interest per year, you could retire in 25 years with $1,354,930 saved. Do you see what I’m trying to tell you? See, your credit card debt payments are not only costing you a fortune in interest but they may also be stopping you from planning and saving for a secure your financial future!
Almost half of the households in this country report having difficult paying their minimum monthly credit card payments. Is your household one of them?
Every year for the last several years, more than 1 million people have been filing for bankruptcy. Excessive credit card debt is one of the major reasons for this.
Don’t get me wrong. Credit has its uses. But the abuse of credit has destroyed more lives, marriages and businesses than anything else I’ve seen. Left unchecked, it can destroy everything you’ve worked so hard for. Making the decision to change is your first step in solving your debt problems. Once you decide, make a commitment to live within your budget and control your spending. After you have reduced your spending, use the money that you save to pay your debts slowly, one by one. For some of you, this may take a while and a lot of discipline to do.
If everything else fails, filing for bankruptcy may be your last resort. In a lot of cases I have seen, it’s the only option and has become absolutely necessary in order to recover financially. If you are considering bankruptcy as a possible solution to your debt problems, call my office so that we can talk about your situation.
To schedule a free consultation, please call Toll-Free 1-866-477-7772. We have offices in Glendale, Cerritos, West Covina, Valencia and Riverside.
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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.