Bankruptcy 101

I help people get out of debt through bankruptcy and other options.

As I write this I hear about how things are getting better in the jobs marketplace and for my individual clients. The reality is the rich keep getting richer, and there is less and less available for people to help make ends meets.

There is not a profession that is insulated either. I’ve helped retail fast food workers, mechanics, child care professionals, stay at home parents, senior citizens and retirees. I’ve also helped doctors, lawyers, business owners, banking and mortgage executives, and even financial planners and everyone in between.

It does not matter how you ended up with crushing debt. It can be your own doing, a medical situation, bad luck in the job market, or even a divorce. To get my help, you must desire to get your debts resolved. My clients are making less than they should or need to survive, and the cost of living is skyrocketing. Many people are looking for help to get back to square one and attack life with refound energy. Bankruptcy’s fresh start is designed to help you do exactly that.

If you are an individual person in financial trouble, you generally have two bankruptcy options: Chapter 7 bankruptcy or Chapter 13 bankruptcy.

Chapter 13:

In Chapter 13 bankruptcy, you pay some or all of your debts back over time. A reasonable repayment plan will be created, generally lasting between 3 and 5 years. Debts remaining at the end of that time will be discharged completely. This can mean paying a much smaller portion of the debt than you otherwise would.

Chapter 7:

In Chapter 7 bankruptcy, most of your debts will be discharged completely. You can keep generally keep your stuff, but in some cases assets will be sacrificed to eliminate the debts. While you can keep your home or car by keeping up with payments, not everyone chooses to do so. Bankruptcy does allow you to surrender homes or vehicles and be free of their burdens.

WHERE DID BANKRUPTCY RELIEF COME FROM? It’s in the Constitution!

Bankruptcy laws exist for a reason: Our founding fathers realized that in order to pay taxes, live, support their families and generally be good, upstanding citizens, Americans had to have a way out of crushing debt loads. They created our bankruptcy laws as the Constitutionally approved way to get relief.

It’s in Section 8 of the United States Constitution—”The Congress shall have Power … to establish … uniform Laws on the subject of Bankruptcies throughout the United States.”

Where did the founding fathers get the idea that bankruptcy is a basic right and vital to maintain the health of a free and democratic society?

Religion and the Lord’s Bankruptcy Release.

Perhaps they took inspiration from the Christian Bible?” At the end of every 7 years you shall grant a release of debts. And this is the form of the release: Every creditor who has lent anything to his neighbor shall release it; he shall not require it of his neighbor or his brother, because it is called the LORD’s release.” (Deuteronomy 15:1-2)

Whatever the source, and contrary to what you may have heard or believe, bankruptcy isn’t something that only slackers do. The reality is that, across the board, I have NEVER had a client who did not want to pay their debts. Rather my clients can not pay the debts for a variety of reasons and circumstances. It’s nothing to be embarrassed about. You will recover from this.

Bankruptcy: The Hardest Part

What’s the hardest part of bankruptcy? Honestly, it’s making the decision to pick up the phone and call me at 888-560-8146. We’ll make the rest easy. Nobody will come to your house and inventory your things. Nobody will tell your friends and neighbors about your financial situation. It’s a cordial and civil process that we try to make as easy as possible.

If you’re considering filing for bankruptcy, we urge you to talk with us sooner rather than later. Many people put off filing and make mistakes that cost them financially, mentally and emotionally.

For example, many people spend their 401(k) retirement savings accounts to pay off creditors in a last ditch effort to “do the right thing.” But, if you file for bankruptcy, your 401(k) is exempt. You get to keep it. 100 percent. This is critical to know because every $1,000 removed from your 401(k) now can cost you $10,000 or more of potential retirement savings.