Facing Debt: Understanding Your Options Before It’s Too Late – Attorney Ray Bulaon

Many people today find themselves burdened by overwhelming debt, constant calls from creditors, and what feels like no way out. For some, a sudden job loss led to a downward spiral, making it impossible to keep up with bills. For others, a divorce or unexpected medical expenses drained their resources and left them struggling to stay afloat. The pandemic also took a heavy toll—one-third of small businesses closed permanently, and many of those that survived are still barely covering payroll and other operating costs.
In these circumstances, bankruptcy can be a powerful tool to regain control before things get worse. Unfortunately, myths and misinformation keep many people from even considering it. Some believe bankruptcy will only make their problems worse, or that they will never be able to rebuild their credit. Too often, this bad information comes from well-meaning friends and family who simply repeat what they’ve heard. As a result, people who desperately need relief sometimes do nothing—paralyzed by fear of making the wrong choice.
The truth is, there is no one-size-fits-all solution to debt. Every situation is unique and should be carefully reviewed by an experienced attorney who can explain all available options. With the right guidance, you can make informed decisions that protect your assets and put you on the path to recovery.
All too often, I see clients who have struggled for years before coming to me. In trying to stay afloat, they’ve drained home equity, savings, and retirement funds—only to end up filing bankruptcy anyway once those resources ran out. What many people don’t realize is that bankruptcy exemptions allow you to keep most of your assets. Instead of exhausting everything you’ve worked for, it’s often wiser to plan ahead and protect what matters most.
Debt can happen to anyone. The sooner you explore your legal options, the more choices you’ll have, and the better you’ll be able to prevent a true financial emergency. I understand the sleepless nights and the constant anxiety that debt creates, but it doesn’t have to be permanent. Bankruptcy exists for a reason: to give honest people a fresh start and the opportunity to build a better future for themselves and their families.
And if bankruptcy isn’t the right solution, alternatives may still be available. In many cases, it’s possible to negotiate directly with creditors to pay a reduced amount. For example, once an account is more than 180 days past due, I am often able to settle debts for 30–60% of the balance. Creditors are often willing to work with you when they realize that recovering something is better than nothing.
Whether through bankruptcy or negotiation, solutions do exist. The most important step is not to wait until it’s too late. By taking action now, you can stop the cycle of stress and uncertainty—and finally start moving toward financial stability.
Ray Bulaon is a bankruptcy attorney and business debt mediator in Valencia who has successfully helped more than 5,000 clients in getting out of debt. For a free consultation, call 866-477-7772 or 661-775-4880. Due to current COVID restrictions, consultations are available by phone or video.