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Sounds a little crazy right? ... Bankruptcy is awesome ???
That's probably the last thing someone would be thinking when they first consider filing for bankruptcy.
Now ... are we saying that everyone should run out and file bankruptcy ?    Absolutely not.
Do we tell everyone who comes in see us that they should file for bankruptcy?  Not at all. Often times, we may recommend to clients that they hold off on filing for bankruptcy because there may be alternative ways to straighten out their financial problems.
However, the thing we do tell all clients is that, given the right circumstances, filing for bankruptcy relief can be AWESOME and can give YOU the power to turn around your financial worries!
Up until now, you probably feel as though your creditors have had all the power ... they dictate:
  • how much is due
  • when it's due
  • how much you need to pay now for them to consider it current
  • how fast you need to get it all paid
And you explain to them why you're behind ... and they don't care at all (because you're just another account number to them)
and this is when we say bankruptcy can be AWESOME!
One of the main reasons why we say this is because of the POWER SHIFT that bankruptcy brings about. The way it gives you the power for a change. It gives you the power to:
  • wipe out their debts entirely; or
  • tell them how you are going to repay your debts
which can be AWESOME!
When you think about it, that is the reason the bankruptcy laws were written. These laws were put into effect because everyone knows that ... well ... life happens:
  • people get sick or injured with huge medical bills
  • folks get laid off after working a job for 10, 20, 30 years!
  • spouses get divorced and now instead of needing to support one household, there are two and the other bills fall way behind.
  • or due to illness or unemployment, folks fall behind on their mortgage or car loan ... and are now facing foreclosure or repossession.
  • or maybe just being young and running up credit card debt because you didn't realize (and the credit card companies certainly never told you!) of the high interest rates, late fees & penalties ... that are basically designed to forever keep you in debt!
These are all examples of things that are:
  • totally unexpected
  • not your fault
  • and there is no way to prepare for them
And this is why bankruptcy can be AWESOME!
You shouldn't think of bankruptcy as the low point ... because it's not. You should think of it as a lifeline that's been afforded to folks to help get them out of financial problems and to rebuild.
Bankruptcy can, often times, provide you with an amazing amount of relief ... both financially ... and probably more important ... mentally!
Let us give you  a couple of examples of when bankruptcy has been awesome for clients:
A picture of debt relief
(i.e. credit cards, medical bills, personal loans)
Clients come in all the time who have a lot of
unsecured debt, and given their current
income, they've only been able to afford to
make minimal payments or are missing payments. So unless some was to drastically change, they are going to have those same debts for years!
Meanwhile, their credit scores are bad, they are being charged huge interest rates and are constantly being hit up with late fees & penalties.
So, unless they had an option available to them to change their situation, they were likely to continue to struggle, never having a chance to make it ahead, continuing to feel constantly stressed out and virtuously powerless against their creditors and ...basically miserable!
The bankruptcy laws give these clients the power for a change and enable them to change their own situation ... and to simply wipe out all the debt that has been holding them down!
And often times they can get it done in as little as 3-4 months! Then, after their debts are discharged, they can immediately begin to rebuild their credit ... to save them even more money!
A pictue of credit card debt
A picture of medical bills.
A picture of a personal loan.
A lot of clients who have been sued over unpaid unsecured debts
(i.e. credit cards, medical bills, personal loans, etc.) end up having judgments
entered against them wherein a Court has ruled that the client owes a creditor a
sum of money and now the client has to repay the amount owed, plus attorney fees and continuing interest!
Once the client see that their check is being garnished, they realize they can't live on the amount of money that is now left each paycheck!
Sometimes they call the creditor's attorney, attempting to get them to garnish less from their paychecks, and are told there is nothing that can be done.
So then the client comes in to see me, desperate to stop the garnishments so he/she can continue to put food on the family's table.
We explain to the client how if this is the only debt that he/she owes, we can often times use the threat of a Chapter 7 to get the creditor's attorney to agree to reduce the amount they are garnishing each paycheck. The creditor's attorney knows that we are a bankruptcy firm and that if they don't agree to reduce the garnishment amount, that we'll simply put the client into a Chapter 7 bankruptcy and entirely wipe out the debt and the creditor will get nothing!
On the other hand, if the client also owes other debts, in addition to the one that is garnishing him/her, we usually go over how they can simply file a Chapter 7 and wipe out (i.e. "discharge") all the unsecured debt (credit cards, medical bills, personal loans) that have been holding them down!
Filing a Chapter 7 gives the CLIENT the power for a change to tell the creditor what they are going to get!
A picture showing wage garnishment.
Clients often times come in who have recently received a
Notice Of Foreclosure from either their mortgage company
or HOA (homeowner's association).
They've fallen behind on their mortgage or HOA payments because of a loss of a job, or being out of work due to an illness, etc. The mortgage company is now telling them they need to pay all the missed payments plus their attorney fees plus their court costs and filing fees (or maybe the bank is demanding that the entire mortgage balance be paid immediately)!
They're completely stressed out and are desperate to keep their family home because:
  • they may have lived there for years
  • they don't have the money to move
  • they don't want to move
  • they don't want to take their kids out of their school and away from their friends
They then come in for their free bankruptcy consult and explain how they feel it's "hopeless".
Because a Chapter 13 is a repayment type of bankruptcy wherein you:
  • keep and repay any secured debts (home loans, car loans, etc.) that you want to keep; and
  • repay your unsecured debts (credit cards, medical bills, personal loans) at a certain percentage ... as payment in full (and this can often times be as little as 1-2%) !
If we're dealing with a foreclosure, and you file a Chapter 13, the back mortgage payments (i.e. "arrears") you owe are not due immediately. The arrears are spread out over the next 36-60 months ... making the payments more affordable and giving you "room to breathe" ... and enabling you to keep your home ... which is AWESOME!
A picture showing a home in foreclosure.
Clients call all the time about vehicle repossessions.
Either their car has already been repossessed or is
about to be repossessed.
The client fell behind on the car payments due to things such as being laid off at work, or losing work due to an illness, etc.
Meanwhile, the client doesn't have the money to get the car loan current, but nonetheless desperately needs the car to get to/from work, go to doctors, etc.!
The car lender is saying they need to get paid all the missed payments plus late fees & penalties immediately or they'll come and pick up the car.
Because in Chapter 13's, the missed car payments are not due immediately. Instead, when you file a Chapter 13, you forget about the missed payments and simply repay the car loan by paying off the loan over the next 36-60 months.
Additionally, when repaying a car loan through a Chapter 13, the interest rate is reduced to only around 6.25%!
Another AMAZING thing you can do with car loans in a Chapter 13 is to "cram it down".
In Chapter 13's, if you've owned the car more than 2.5 years (910 days), you can repay the loan by paying the lender the "fair market value" of the car (vs. the total amount owed on the loan)! This often times saves clients thousands of dollars!
A car or vehicle being repossessed.

Consult with an experienced Bankruptcy Attorney serving Broward, Miami-Dade and Palm Beach Counties to see if bankruptcy could be an AWESOME solution to your financial worries!


Call Beacon Law, P.A. to schedule your FREE attorney consultation!

We're Open 7 Days Per Week!
Open Saturdays & Sundays!
8:00 am - 8:00 pm!

Bankruptcy Is 

Not something you hear very often ... but
given the right circumstances ...


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