Bankruptcy: Before You Deplete Assets to Pay Debt – RJB Law Offices

Like most people, you’ve worked hard and have done your best to pay all your bills on time. But in life, at one time or another, we all find ourselves in a situation where debt can be overwhelming. Many people feel hopeless and powerless over their debt problems. Debt problems can easily spill over into other areas of your life- your marriage, family and your business if you are self-employed. If you are currently in debt, rather than allowing your money problems to affect your life in such a dramatic way, filing for bankruptcy protection may help you get your life back on track.
If you’ve suffered a job loss, are facing foreclosure or have bills you can no longer afford to pay, Congress has enacted bankruptcy laws that can help you get your finances back in order. I know that the mere thought of bankruptcy makes most people nervous; so, they avoid exploring their options until it’s too late. This is unfortunate because in a lot of cases, people could have turned their situation around much sooner had they acted sooner. Some people wait too long to file bankruptcy even when it is their only option. In the process, they use up hard-earned assets like their retirement plan and savings accounts. In the end they realize that this was nothing more than a temporary fix to a lingering problem. Sooner or later, these people realize that they would have been better off filing for bankruptcy before losing everything that they had worked so hard for. Don’t let this happen to you!
If you’ve come to the end of your financial rope and don’t know what else to do, at least find out what your legal options are before things get worse. You don’t need to keep living paycheck to paycheck while digging a deeper financial hole every single month. Yes, bankruptcy may be a scary thing for a lot of people who don’t understand the process but once they’ve taken the time to find out how it works and how it could help them get out of debt, they often realize that it’s not as difficult as they first thought. Bankruptcy is a beginning, not the end.
For individuals who are eligible for debt relief, the options are either a Chapter 7 or a Chapter 13 bankruptcy. Chapter 7 allows you to wipe out debt that you can no longer afford to pay such as credit cards, personal loans, medical bills, car repo deficiencies, etc. Chapter 13, on the other hand, is for people who have regular income and the ability to pay back at least a portion of what they owe over a 3 to 5-year period. Each has its own advantages and disadvantages, and an experienced bankruptcy attorney needs to carefully evaluate your situation and review income, assets, expenses, etc. A lot of people fear that they may lose property or assets if they file for bankruptcy. However, this is simply not true. As a matter of fact, in almost 100% of the 6,000 cases I’ve handled in the last 24 years, my clients lost nothing and got to keep everything. Of course, every case is different and there may be situations where filing bankruptcy may not be advisable if there are important assets at risk.
Dealing with financial problems can result in stress, fear and embarrassment. With the current economy in turmoil, more and more people are filing for bankruptcy protection. The stigma that once surrounded bankruptcy has almost disappeared. Once you consult with a bankruptcy attorney, you may soon discover that the law is on your side and that you just need to let the legal process work for you. Ray Bulaon is a bankruptcy and tax resolution attorney in Valencia who has successfully helped more than 6,000 clients in getting out of debt. For a free consultation, call 866-477-7772 or 661-775-4880.