“It’s a misconception that once you go bankrupt you automatically lose everything. The truth is, most people keep everything they have (house, car, bank accounts, retirement plans, etc.) and they don’t lose anything at all.

PEOPLE with overwhelming debt problems during this difficult time have many questions. Are you afraid of being sued and that your creditors will get judgments against you, garnish your paycheck, and take your bank account? What would happen to your home or business if you fell behind on your debts and couldn’t catch up? What’s the worst creditors can do to you? Are you afraid of losing what little you have and wondering how you are going to survive if you cannot even afford the basic necessities like rent, mortgage, food, transportation etc. and much less? pay your bills?

Making the right decisions is essential to your financial survival in the face of debt problems. No one ever wants to be in this situation, and it could be one of the most difficult situations you will encounter in your life. But don’t despair.

At one time or another, everyone experiences financial challenges in their life. Right now, there are thousands of people who have lost their jobs or have had their hours reduced due to the virus. Some people who thought they were only temporarily fired during lockdown find they don’t even have a job to return to. It’s not your fault because it’s not something you caused.

In times of financial crisis, millions of people have looked to bankruptcy as a way to get debt relief. And in most cases, if they hadn’t filed for bankruptcy, there would have been no other way for them to start a new life without the burden of debt.

Under federal law, you have the right to file for bankruptcy and get immediate debt relief.

While you may have heard bad things about bankruptcy, it is really just a legal remedy that allows you to take back control of your finances so you can get back on your feet as quickly as possible. Of course, this isn’t the answer to all financial problems, but when it’s appropriate for your situation, it may be the only way you can get yourself out of the mess you find yourself in right now.

In short, Chapter 7 allows you to write off or pay off your debts, but in return, you must give up any non-exempt assets you may have. The good news is that most people don’t have much and how little they have; they are often protected by bankruptcy exemption laws. So, it is a misconception that “once you file for bankruptcy you will automatically lose everything”. The truth is, most people keep everything they have (house, cars, bank accounts, retirement plans, etc.) and they don’t lose anything at all.

Chapter 13, on the other hand, is a plan for reorganizing or consolidating debts. The court requires that you submit all of your income information along with a monthly budget to assess your ability to pay. Your Chapter 13 plan payments will be based on the excess income as determined by the court. Chapter 13 allows you to keep valuable assets such as your home or car (even if you were behind on your mortgage and car payments when you filed) and will stop foreclosure and repossession immediately the day your file is submitted. Credit card debt is included in your monthly payment under Chapter 13, and in most cases, it can be significantly reduced or even eliminated altogether.

Being in debt is not the end of the world. There are options available and the sooner you take action, the sooner you’ll be on your way to getting the relief you desperately need. If you haven’t read my book, “What You Need to Know Before You File for Bankruptcy,” you can download it for free at www.beforefilingbk.com.

For a free assessment of your case, please call our office toll free at 1-866-477-7772 to schedule a free consultation. Let us help you.

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NOTE: Due to the COVID-19 pandemic, I am offering free PHONE consultations to anyone who needs help dealing with their debt issues.

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None of the information in this document is intended to provide legal advice for a specific situation. Atty. Ray Bulaon has successfully helped over 5,000 clients get out of debt. For a free legal assessment of your situation, please call RJB Law Offices at Toll Free 1-866-477-7772.