IF you are struggling with debt and have done everything you can to no avail, bankruptcy may be the only way for you to wipe the slate clean on your financial troubles.
Some people have gotten so behind on their debt payments that it has become impossible for them to catch up. Creditors are calling and threatening to sue. They don’t know who to pay first because everyone wants their money — and they want it right now.
Bankruptcy is a legal process that allows you to regain your financial footing if you find yourself in a situation where you have accumulated more debt than you can pay back. Some people have excessive debt that they will never be able to pay it all back over their lifetime. Sad but true.
This can happen to anyone regardless of how much money you make. I tell my clients that someone who makes $100,000 a year can be in just as much financial trouble as someone who makes $20,000 a year.
Because at the end of the day, it’s not how much you make that counts. It’s what you have left after you pay your debts and living expenses. Some people have a very high consumption lifestyle.
They have the nicest homes, cars and all other toys. But they own nothing. Why? The banks own everything! I once had a rich (well, he used to be rich) client who lost everything once he lost his job. That’s when he realized that everything he had was purchased on credit.
Well, how can bankruptcy help?
There are several types of bankruptcy. The most common ones for individuals are Chapter 7 and Chapter 13. Chapter 13 is a debt consolidation that allows you to pay creditors based on how much you can afford. Chapter 7, on the other hand, allows you to wipe out debts you can no longer pay back.
Which “chapter” you file depends on your income, expenses, assets and your goals in filing a bankruptcy case. It makes sense to consult with a knowledgeable and experienced bankruptcy attorney who can review your specific situation and see what is best for you.
Before taking the plunge, it’s a good idea to understand what bankruptcy can and cannot do for you. For example, there are certain debts that cannot be wiped out in bankruptcy such as student loans, most taxes and back child support.
Some people think that filing bankruptcy is shameful and they equate it with failure. The truth, however, is that bankruptcy is nothing more than a tool to fix an already bad situation.
In other words, bankruptcy is a state or condition that you’re already in if you’re unable to meet your financial obligations. When you “file bankruptcy,” what you are actually doing is filing an application for relief from the court so that you can improve your financial situation and ‘get out of bankruptcy’.
The Court will decide if you are eligible for the relief that you are seeking. A Chapter 7 case lasts about four to five months. A Chapter 13 case can last three to five years. That may seem long but it’s better than being stuck in debt for the rest of your life.
Once you are out of bankruptcy, you can rebuild your finances and your credit again. You don’t have to worry about creditors taking what little you have and you can start saving money for the future again.
Bankruptcy can be a lifesaver for people who find themselves with no other options. But as I said earlier, before you consider bankruptcy as your path out of debt, it is important to consult with an attorney who can help you decide if it’s the right option for you.
I’d like to review your situation and help you get out of debt as quickly as possible. For a free attorney consultation, call Toll-Free 1-866-477-7772. We 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.