Don’t let a false negative stigma of bankruptcy keep you from reaching financial stability and a fresh start.
I believe that the negative stigma of bankruptcy is starting to change.
Maybe it’s the 1.4 million people that have found relief in 2009 through filing bankruptcy.
Consumers these days cannot help but be tempted by companies that are constantly advertising that they can save you 50% on the dollar for the debts that you have.
Debt settlement companies have multiplied like ants over the past few years and although some can get good results for their clients, many are just offering false promises. Some things that they might not tell you or you’ll find in the small print.
Your credit card balances won’t necessarily settle at 50% of what you owe currently. You will continue to get finance charges, late payments, potentially over the credit limit charges etc while you are falling behind on your monthly bills and waiting for a settlement. These charges can add up quickly.
Debt Settlement vs. Bankruptcy
There are a lot of factors to consider when trying to determine whether settling your debts would be more advantageous than filing bankruptcy.
As a Bankruptcy Attorney my first inclination is to say that bankruptcy is usually the better route although it does depend. There are quite a few clients that I have helped and have been successful in negotiating principal on their outstanding debts. The things that I look for in a potential debt settlement client is the ability to pay the debt at a somewhat expedited pace. This is why most people who are broke are not great candidates for debt settlement. If you had trouble meeting your minimum payments, unless you are seeing a fast recovery bankruptcy is probably a better solution. I have seen great success in candidates who have a family member, friend, business colleague etc who will loan them money within 180 days of being behind on there debts.
DEBTS ARISING OUT OF DRUNK DRIVING CASES ARE NOT DISCHARGEABLE UNDER THE BANKRUPTCY CODE
If you have been sued for operating a motor vehicle while under the influence of drugs or alcohol, or another substance as a result of injuring another person, then your debts for this obligation will survive the bankruptcy and not be discharged. Section 523(a)9 of the bankruptcy code excepts from discharge debts from personal injury cases where the debtor was under the influence.
Any kind of willful or malicous conduct by the debtor to another person will not be discharged. Another one that comes up criminal restitution fines, child support orders. These are debts that you will live with after your bankruptcy is discharged, so if these are your reasons for filing, I would advise against it.
1.4 Million People have found their fresh start in 2009 by filing for Bankruptcy. Would you like to experience this peace of mind?
It’s true. Over the last year 1.4 million Americans have sought shelter in the bankruptcy code to renew their fresh start and experience life free from debt collectors, overdue bills, revolving balance transfers, and the stress that comes from living in this cycle of debt.
They’ve made the right decisions for themselves and their families. If you are already behind on bills and have dings against your credit, your credit score has been affected negatively and you are unlikely to get new loans and lines of credit in this economy. You are not alone. More than 10% of credit card holders are far behind on their monthly bills.
Riverside County Bankruptcy Lawyer Blog
