Bankruptcy: Because Life Doesn’t Always Go as Planned – RJB Law Offices

Life happens. Sometimes even the best laid plans can go wrong. How do you respond when this happens to you? Do you easily give up when you’re overwhelmed? Remaining calm can be difficult when things are chaotic and so the usual reaction is panic.
Bankruptcy can be a lifesaver for people who are at the end of their financial rope. Since the pandemic started, a lot of people have been struggling to just keep up with their bills. The pandemic may have caused job instability; for business owners affected by the pandemic, the government did what it could to help mitigate losses by offering financial assistance and loans. People who couldn’t pay their mortgage were allowed forbearances. Renters who couldn’t pay their landlord were protected with eviction suspension laws. Unfortunately, all the above are no longer available to most families who are still under a tremendous financial burden.
Real estate values surprisingly shot up during the pandemic but once the feds started raising interest rates, people who could otherwise refinance their mortgage and squeeze out some of their equity from their home are no longer able to do that because of the high costs of borrowing. Buying has also slowed down and according to a recent article, mortgage applications have plunged to a 28-year low.
People with little credit card debt had no other choice but to borrow, hoping that “when things get better”, they can just pay it all back slowly. Of course, this is nothing more than a temporary solution that could backfire if the additional debt is not paid back. At some point, the credit lines are exhausted, and they are in a deeper financial hole that is hard to get out of. I know this sounds discouraging when you’re clueless about where to turn once you have exhausted your resources. But there is hope.
If you are currently facing a financial crisis, it may be tempting to just throw in the towel and give up all hope for a better financial future. But let me tell you that instead of getting frustrated and angry about things that you cannot control or change, your energy will be better spent focusing on finding a solution. Stop analyzing everything that happened and quit being too hard on yourself. In life, things will not always go your way but keep your head up and focus on putting the pieces of the puzzle back together. In the meantime, seek legal counsel about your situation especially if important assets or legal rights are at risk. It’s better to know your options now so you can plan before your situation becomes a financial emergency.
Ray Bulaon is a debt and IRS tax resolution attorney in Valencia who has successfully helped more than 6,000 clients. For a free consultation, call 866-477-7772 or 661-775-4880.