ARE you facing insurmountable debt problems? Are creditors threatening you with lawsuits, judgments or a wage garnishment? Are you afraid of losing what little you have and wonder how you are going to survive if you can’t even pay for life’s basic necessities like rent, mortgage, food, transportation, etc., let alone pay your bills?
Making the right decisions is critical to your financial survival when facing debt problems. No one ever wants to be in this situation and it could be one of the most challenging situations you’ll ever face in your life. But don’t despair. At one time or another, everyone experiences financial challenges in their lives. Don’t worry about things that you can’t control. You’re better off spending your energy on those things that you can. One of those things is your power to decide that enough is enough and that you will do something about it now instead of just worrying and feeling sorry for yourself. Procrastination can be your biggest hurdle in changing your life for the better.
You have rights under federal law to file bankruptcy and get immediate relief from debt. Bankruptcy is nothing more than a legal remedy that allows you to regain control of your finances so that you can get back on your feet as quickly as possible. Of course, it is not the answer to all financial problems but when appropriate for your situation, it may be the only way for you to get out of the mess you’re currently in.
Briefly, Chapter 7 allows you to cancel or discharge your debts but in return, you must give up whatever non-exempt assets you may have. The good news is that most people don’t have much and whatever little they have, they are often protected by the exemption laws in bankruptcy. So it is a misconception that “once you file bankruptcy, you will automatically lose everything.” The truth is that most people keep everything they have (homes, cars, bank accounts, retirement plans, etc) and they lose nothing at all.
Chapter 13, on the other hand, is a debt reorganization or debt consolidation plan. The court requires you to submit all your income information as well as a monthly budget to assess your ability to pay. Your Chapter 13 plan payments will be based on the surplus income as determined by the Court. Chapter 13 allows you to keep valuable property such as your home or car (although you were behind on your mortgage and car payments at the time of filing) and will stop foreclosure and repossession immediately on the day your case is filed. Credit card debts are included in your monthly payment under Chapter 13 and, in most cases, they can be significantly reduced or even totally eliminated.
Being in debt is not the end of the world. There are options available and the sooner you act, the sooner you will be on your way to getting the relief that you need badly. Call us for a free consultation at Toll-Free 1-866-477-7772. We have offices in Los Angeles, Cerritos, Pasadena & 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.