Creditors are relentless in their pursuit of money. I talk to clients every day who are doing everything they can to pay creditors each month, and yet the creditors refuse to be reasonable. Bankruptcy is a vehicle available to most of those clients, and one way to view bankruptcy is that it forces creditors to be reasonable. And as soon as you file, the calls and harassment stop for good.

Your Financial Picture

When a client files bankruptcy, the bankruptcy trustee is essentially determining the client’s ability to pay the creditors. While there are income thresholds (State Median Income) which may automatically qualify you for bankruptcy, more often your attorney uses the Means Test, which is an analysis of your overall financial picture: income, debts, and assets.

What To Expect

In many cases, your creditors will receive nothing in bankruptcy and you will receive a full discharge of the debt. You are only entitled to this relief every eight years so while the relief is powerful, it is also fair to creditors. Additionally, in cases where creditors receive nothing in bankruptcy it’s because you’re simply unable to pay them anything meaningful while maintaining an acceptable standard of living.

Paying Back A Percentage Of Debt

When creditors do receive something in bankruptcy—typically in a Chapter 13 bankruptcy—the payments you make to them are a percentage of the entire debt owed to them. If you demonstrate over the course of the Chapter 13 plan that you can consistently make these (much smaller) percentage payments, then at the end of the plan you will receive a discharge of the remaining debt.

You Are Entitled To Help

The bankruptcy rules are here to protect you and to assist you in getting the relief you need, while also protecting creditors against individuals who are capable of paying but just unwilling to pay. Your bankruptcy attorney can help you determine whether you qualify for bankruptcy relief, and make you feel comfortable about the choice to file. It’s never a bad idea to protect your family, and you deserve a fresh start.

Call An Attorney Today

Call today to find out more about your options. My job is not to convince you to file bankruptcy. Instead, I want to make sure you understand the situation you are facing and help you achieve the best result for you and your family.

I’m available at 704.749.7747 or by email HERE. Take control. Make the call today.