Ignoring debt problems now can be painful later

WHEN people are going through financial difficulty and are unable to pay their bills, their first reaction is often to ignore their debts and avoid contact with creditors. They think that by doing this, somehow the creditors will simply give up and go away.  Bad news: This rarely works.

Then one day they get a summons delivered to their home or work and that’s when they start to panic after learning that they’ve been sued. The next step of course is a wage garnishment, a bank account levy, a lien against their real property or any combination of the above. That’s when they rush to see a bankruptcy attorney to find out what can be done to protect themselves.

Painful consequences can result from non-action. But I do understand that sometimes, people just get so overwhelmed with their problems that they are paralyzed by fear. The fear of the unknown, the fear of making changes in their lives or sometimes, , the fear of making those difficult decisions that they’ve been avoiding to make. I know because I see it all the time. But the reality of it is that if there are dreadful consequences to not facing your debt problems, you will either face them now or later, it’s just a matter of time.

So how do you start to tackle the problem when it seems so enormous that you almost feel like giving up before you even start? How do you get out of debt if you are currently feeling trapped in your situation with no way out?

There basically only 4 ways to get out of debt if you’re on the verge of insolvency: (1) increase income so you can start paying larger amounts on your debts to hopefully avoid filing bankruptcy, (2) reduce expenses so that you can increase your disposable income and have more money available for debt repayment, (3) Convert assets you don’t need into cash and use the money to negotiate with creditors, and (4) File bankruptcy to wipe out debts or consolidate your bills (This requires filing either a Chapter 7 or a Chapter 13).

If you’re feeling paralyzed by debt and can’t think clearly at the moment, you need a good attorney who can properly evaluate your situation and recommend possible solutions. The first thing you need to do when you don’t know what to do is to realize that sometimes, you cannot do it on your own. There is nothing wrong with getting legal help. The sooner you get help, the sooner you would be able to protect your home, your job, your car, your bank account and other assets. For more information and to schedule a free consultation, please call Toll-Free 1-866-477-7772. We have offices in Glendale, Cerritos and Valencia

* * *

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. 

1 Comment
  1. What does it mean to get into debt? Although there is more dollar money coming- in from the OFW, many Filipinos are still in
    debt. Sann napupunta ang pera?
    I do not know if they still teach Home economics in high school but a subject must be incorporated in high school to make children aware of
    the value of money.
    A child may be lucky if she/he comes from parents who make them aware of the value of saving. Having a college education would not mean that they would know how to save .. Without money, you can not be happy or you are less of a person if you cannot have all the stuff you want! Is this the NEW Morality in the Philippines?
    You have heard of people using their credit card and buying stuff that they think “they need”. Or getting into situations that they have to BUY!,BUY! BUy! without even thinking IF they the money to pay for them and how long will they pay for it.
    This mindset has been a problem for many OFW who worked hard but are homeless after they finished their contracts. Or their family members bought so much that they expected their OFW spouse has a bottomless pit of money!!! Or else their children buy stuff including drugs to show off to their friends they have the money (from their parents) to buy whatever they want. Or the spouse who is left behind in the Philippines buys cars, gambles or womanized to show off that they have an endless amount of money. or they will buy stuff more expensive than their neighbors to make sure that everybody in the neighborhood knows that they can also afford it?
    Adult children who were able to succeed in life and business learned the value of money from their parents. They are a lucky bunch. But not everyone in the Philippine has been blessed with these kinds of parents.
    Teaching the value of saving and appreciating what money can actually cost starts in high school
    Counties that developed had a national programs to get out of poverty like South Korea and Singapore through saving and hard work. It is incorporated in the school. The best time to teach them is preadolescents and teenage years so they can learn how to differentiate what are the needs and wants. These present generations have lost direction since their parents buy everything they want since they ” do not want them to feel Poor”. Hence, they buy stuff without thinking of the possibility of getting into debt and nothing to save for the future.

The Filipino-American Community Newspaper. Your News. Your Community. Your Journal. Since 1991.

Copyright © 1991-2024 Asian Journal Media Group.
All Rights Reserved.