Our founding fathers realized that Americans had to have a way out of crushing debt loads to pay taxes, live, support their families, and generally be good, upstanding citizens. So, they created our bankruptcy laws as the constitutionally approved way to get relief. Where did the founding fathers get the idea that bankruptcy is vital to a free and democratic society? Some argue it is an idea taken from the bible! Take a look at the following quotes and decide for yourself.
“The Congress shall have Power … to establish … uniform Laws on the subject of Bankruptcies throughout the United States.”
Section 8 of the United States Constitution
“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
Interesting, right? Whatever the source, the situation you’re in is why the bankruptcy code exists. It’s a tool we as Americans have as a safety net, and thousands benefit from this tool every year. America thrives when we are financially healthy: The family unit is stronger and citizens pay taxes, open businesses, and pump money into the economy. In return, creditors are not completely out of luck: they receive tax breaks on debt that was cleared via bankruptcy.
People from all walks of life file for bankruptcy
There is not a profession that is insulated from bankruptcy. 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, 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 living costs are skyrocketing. As a result, many people are looking for help to get back to square one and get back to living with a newfound sense of hope.
Chapter 7 Bankruptcy vs Chapter 13 Bankruptcy
Chapter 13 Bankruptcy
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 owe.
Chapter 7 Bankruptcy
In Chapter 7 bankruptcy, most of your debts will be discharged completely. You can keep your stuff generally, but assets will be liquidated to eliminate debt in some cases. While you can keep your home or car by keeping up with payments, not everyone chooses to do so. Depending on where you live and your lifestyle, you may choose to give up your car or home to give you extra wiggle room in your finances.
The Hardest Part is Taking That First Step
What’s the hardest part of bankruptcy? Honestly, it’s deciding 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 than later. Many people put off filing and make mistakes that cost them financially, mentally, and emotionally.
