Federal Government Help Failed

Today's tough economic times are increasingly placing consumers in financial turmoil. More people than ever before are suffering from overwhelming credit card debt.  The Federal Government has made an effort, albeit a weak one, to give financial assistance to help distressed borrowers get out of debt.  This has been done through attempts to establish loan modification programs, and other remedies.  But the results have done little to help strengthen the economy.  As most economists agree, our country is suffering one of the worst financial times since the Great Depression.

Federal Government Help has Failed and Consumers Are Resorting Bankruptcy

Most Federal Government programs to help distressed borrowers get out of debt have largely failed.  As a result, more and more consumers are resorting to bankruptcy as a means of obtaining debt relief.  As a San Diego bankruptcy attorney who handles hundreds of debt relief and foreclosure cases, I can see that more and more clients are calling each day and asking to explore their debt relief options.  This confirms my belief and analysis that the Federal Government programs have not been successful in providing debt relief to distressed San Diego borrowers.


Many consumers endure multi-year struggles to reduce their credit card debt, medical bills and unsecured loans and lines of credit.  They ensure debt repayment programs for years, only to find that years later they owe the same amount of debt they did when they started repayment.  They realize that in order to have a realistic change of getting out of debt, they need to start with a clean slate.  That’s the exactly the type of relief provided by filing bankruptcy.


Another factor pushing more borrowers into bankruptcy, is the increase in lender lawsuits against consumers.  The Federal Government bailouts were only temporary.  They did not last.  The finance companies did not get all of the help they needed.  They need money, so they turn to suing consumers.  Consumers get sued, and in turn file bankruptcy.  Had the Federal Government done more to help the finance companies, they finance companies could have withstood their losses and written off bad debt, as they used to in the past.  It’s only in the recent years, that credit card lenders and finance companies have gotten so aggressive and are suing every borrower who defaults on their credit card or loan obligations.

Legal Protection

In a very real sense, a bankruptcy filing gives you the legal protection that the Federal Government was unable to do with its debt relief programs.  Filing for protection under Federal Law turns the tables on your creditors who are suing you.  The filing of a petition for bankruptcy relief instantly stops creditors and offers instant liberation from those sleepless nights caused by the fear of harassing phone calls, a repossession, a lawsuit, a bank levy, or a wage garnishment.  By giving you breathing room from your creditors, filing for relief will give you a chance to get out of debt San Diego and rebuild your credit.  You can then avoid a wage garnishment and liens that otherwise would have crippled you financially for years to come.


When you file bankruptcy in San Diego, creditors must immediately cease all debt collection attempts, or risk being sanctioned by the court.  The San Diego court is not tolerant to abusive and illegal creditor actions.  But that’s not all. Upon the entry of your discharge, which eliminates your debts that can be eliminated in bankruptcy, a discharge injunction goes into effect by law that continues to stop creditors from harassing you and attempting to hold you personally liable for a debt.


As a result of the Federal Government’s failed efforts, overwhelming public consensus today has changed drastically with regard to the former stigma of bankruptcy.  The unyielding stereotypes are outdated and no longer exist.  People of all walks of life are filing for bankruptcy relief.  Many good, hard-working people are filing to protect their families.  The branch manager of your bank, your supervisor at your place of employment, the police officers of your local police force, and the court personnel at your local courthouse are all filing bankruptcy.  Just ask around and you will be surprised how candidly people will tell you of their financial troubles and how bankruptcy helped get them and their families out of debt. Begin building the foundation for a better future and financial success for your family by contacting a qualified attorney today.