Bankruptcy can help you if you’re overwhelmed by debt. You’re not alone in your struggle. Many good, hardworking people reach a point where the bills are too much to keep up with. Medical debt, credit card balances, job loss, divorce, reduced income, repossessions, and rising living costs can all push a household beyond its limits.
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 can use as a safety net. My clients benefit from this tool every year, as do other Americans. 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.
Frequently Asked Questions
Do people from all walks of life file for bankruptcy?
People file bankruptcy for many different reasons, and it is not limited to any one profession, income level, or stage of life. I have helped people from all walks of life, including:
- retail and fast-food workers
- mechanics and tradespeople
- stay-at-home parents and childcare professionals
- retirees and senior citizens
- business owners and self-employed individuals
- doctors, lawyers, and other professionals
The reason for the debt does not have to be dramatic or unusual. Some people file because of medical bills. Others have been hurt by job loss, inflation, reduced hours, divorce, business struggles, or simply years of trying to keep up with minimum payments that no longer work. To get my help, you must be willing to resolve your debts. 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 discover a newfound sense of hope.
What are the two most common types of consumer bankruptcy?
1. Chapter 13 Bankruptcy
Instead of wiping out debt immediately, Chapter 13 allows you to repay some or all of your debt over time through a court-approved plan, usually lasting 3 to 5 years. At the end of the plan, qualifying remaining debt may be discharged. You may pay back a much smaller portion of the debt than you otherwise owed.
2. Chapter 7 Bankruptcy
Chapter 7 bankruptcy is often called a “fresh start” bankruptcy. In a Chapter 7 case, many unsecured debts can be discharged, meaning you are no longer legally required to pay them. While you can keep your home or car by making your 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 The First Step
For many people, the hardest part of bankruptcy is not the paperwork or the court process. It’s making that first call. Once you decide to pick up the phone and call me at 888-560-8146, we’ll make the rest easy. 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. Contact my office to learn more about your options.
