Considering Bankruptcy? 5 Questions to Ask Yourself – Ray Bulaon

Are your debts keeping you up at night? If you’re overwhelmed by debt and unable to keep up with payments, it’s natural to feel scared, frustrated, or even ashamed. You may have already tried to fix the situation on your own, but nothing seems to be working. At this point, the idea of filing for bankruptcy might be on your mind—but you’re unsure if it’s the right path forward.

So, how do you know if bankruptcy is the right solution for you? The answer depends on your unique financial situation, including your income, expenses, assets, and the type and amount of debt you owe. While bankruptcy can eliminate many types of debt, not all obligations can be discharged. For example, student loans, child support arrears, and most taxes typically cannot be wiped out through bankruptcy.

To help determine whether bankruptcy might be a viable option, ask yourself the following:

Are you only able to make the minimum payments on your credit cards?

Are you borrowing money just to cover basic living expenses like rent, food, or gas?

Have you lost track of how much you owe?

Are debt collectors calling you about past-due accounts?

Have creditors taken legal action against you, such as filing a lawsuit, obtaining a judgment, or threatening wage garnishment or a bank levy?

If you answered “yes” to any of these questions, you may be in a financial danger zone. Ignoring the problem won’t make it go away. In fact, without taking action, it’s likely to get worse. You may have been avoiding the bills and collection calls—but eventually, you’ll need to confront the situation head-on.

No matter what led to your current financial struggles, what matters now is creating a plan to move forward. The past doesn’t define your future unless you let it. By acting quickly and making informed decisions, you can regain control and open the door to better financial options down the line. Ray Bulaon is a bankruptcy attorney and business debt mediator 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.

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