BANKRUPTCY
Recently I was directed to a You Tube video on how to file bankruptcy for yourself. The presenter listed five easy steps that you must follow to file for bankruptcy and which your attorney has to follow as well. The point the presenter was making is that if you follow these five steps, which you can do yourself, you don’t need to have an attorney represent you in bankruptcy. Of course, this person was peddling his bankruptcy preparation software, so he wants to make it sound easy. This could not be further from the truth. What this person explained was how to file the bankruptcy. He did not explain all of the other things you must do in order to get a discharge, which is the ultimate goal of a bankruptcy filing. With a discharge, you do not owe any of your creditors (with some exceptions) and so creditors cannot sue you, they cannot collect on their debt, they can’t even call you on the phone and request payment. This is the benefit of a bankruptcy discharge. Nearly every time I appear in bankruptcy court and observe individuals who have filed for themselves, the trustee is telling them what they have not done correctly and that their bankruptcy will be dismissed if they do not remedy those mistakes. The trustee, however, cannot tell the individuals how to remedy only what the remedy is. If you file for bankruptcy yourself, wouldn’t you want to obtain a discharge? That is the benefit of hiring an attorney.
Our firm has over 50 years of experience in helping people file for chapter 7 and chapter 13 bankruptcy. A chapter 7 bankruptcy can help low to no income individuals/married couple obtain relief from their debt. A chapter 13 bankruptcy can help any individual/married couple save a home from foreclosure and even obtain relief from creditors if you have a previously filed chapter 7 within the last eight years. Either type of bankruptcy gives you relief from garnishments, pending law suits, foreclosure, harassing creditor phone calls and judgments. Did you know, that in some instances a chapter 13 can even relieve you from second mortgages if you have no equity in your home? A discharge from bankruptcy will “right the ship” so to speak and allow you to take steps to re-build your credit.
So what’s the downside? First of all, a bankruptcy is reported on your credit for 10 years. That does not mean, necessarily, that your credit score will be poor for 10 years. We regularly hear from former clients, that they have qualified for a home loan even though the bankruptcy is still being reported on their credit. Second, you could lose some property through a bankruptcy. The rules regarding what can be taken depend on value and whether your state has an exemption to cover the property. Our firm can safely guide you through questions regarding your property and what may or may not be at risk. Third, you do not get a discharge on certain types of debt, with taxes, certain types of student loans, child support/alimony and debts owed to governmental agencies leading the list.
Is bankruptcy worth it? Only you can decide that. Our firm, however, is here to back you up, guide you through and answer questions about bankruptcy so that your decision can be fully informed. We want bankruptcy to work for you and to give you the best outcome possible. Contact us now for a free consultation. Mention this article and we will file your chapter 13 bankruptcy for only the filing paid in advance. This offer does not apply to chapter 7 filings.
