Why Declaring Bankruptcy May Be Your Wisest Financial Move

When we hear the word “bankruptcy,” we immediately imagine a bunch of guys in business suits screaming “I am ruined!” and jumping from the Stock Exchange balcony. Well, you are probably not one of those guys, but your minimum monthly credit card payments are already higher than your rent, your cards are maxed out and no one is giving you new ones because your credit rating is lower than the South Pole.

Your salary might be enough to live on, but not with the regular payments to the credit card companies. What’s the point of having a job, if you don’t see any of that big salary of yours? But you are afraid to quit because your salary is the only thing between you and those nasty phone calls from the collection agencies. Like those couple of times you had to postpone paying – one time because of that impulse buy of a huge flat-screen TV and the other time, right after that skiing trip – you still owe the hospital for that one – and it’s more than you can ever pay. The hospital’s collections people still call you sometimes, hoping to eke out a few bucks. Add to all that your student loans – and running away to hide in the Amazon jungle suddenly sounds like a great idea.

Bankruptcy might actually offer you an escape from that ferry-wheel of interest rates and monthly payments. There are different ways to go bankrupt – but the one you will grow to love is called “Chapter 7.” In a Chapter 7 Bankruptcy, two important things happen. Number one: your debt gets discharged. Number two (a.k.a. the “other side of the coin”): everything that you own gets taken away and sold to pay back your creditors. That other side of the coin might sound pretty harsh, but fortunately, the law contains many, many exceptions to that rule – all these exceptions basically ensure that no one will take your personal possessions and sometimes even your car and your house. But – your collection of modern art, your villa in Tuscany and your slave army of French chefs will be confiscated. What was that? You don’t possess even a single piece of modern art? What a shame! But, on the other hand, now you won’t have to worry about your belongings getting taken away.

Finally, after you file your Chapter 7 petition in Bankruptcy Court, you will have to appear before a judge – a bankruptcy trustee. The trustee will make sure that you are trying to hide a family fortune from him (and your creditors), and, once he is sure, he will enter an order discharging all your debt. Well, not all – student loans “survive” the bankruptcy, which means, you would still be responsible for them. But, all your credit cards, veterinarian and grocery bills, auto loans and medical bills will go away. The trustee doesn’t make his order final for a few months – just in case you happen to win lottery or receive a large inheritance. However, once the bankruptcy order becomes final, your ailing rich uncle can finally kick the bucket – your debt will still remain discharged.

Now you can finally take those skiing lessons you’ve always wanted to take, go for a vacation or maybe even start saving. You will be able to get new credit cards eventually – quite soon actually – credit card companies prefer somebody fresh coming out of bankruptcy to someone who’s never declared Chapter 7 before. That’s because one can only do a Chapter 7 Bankruptcy once every 10 years. So, don’t repeat the same mistake again – remember, you won’t be able to get rid of your new creditors for quite a while. So, before whipping out that credit card, stop and think how much better it feels without those monthly payments. Try and keep that feeling for as long as you can.

If you live in New York or New Jersey and are thinking about bankruptcy, drop me a line – our law office helped hundreds of people discharge their debt. Once your debt is discharged and you are ready to start anew, read about ways to make money in this hilarious guide – GetRichandQuick.com.

Acceptions:

Basic Bankruptcy Law for Paralegals, 7th Edition<p> Renewing a commitment to preparing students to become effective paralegals in all aspects of Bankruptcy, the <b>Seventh Editio</b>n of this popular text offers important developments in recent bankruptcy law, expanded coverage of means testing, and enhanced pedagogy. In an illuminating overview of the Bankruptcy Code and Rules, respected author David L. Buchbinder provides step-by-step guidance through the paralegal’s role at every stage of the Bankruptcy proceeding. </p> <p> <b>A hit with instructors and students, Basic Bankruptcy Law for Paralegals features</b>: </p> <ul> <li> <b>focused coverage of Bankruptcy</b> that hones in on what students need to know to become effective paralegals in all aspects of Bankruptcy: <ul> <li> consumer representation </li> <li> creditor representation </li> <li> assisting with the handling of a Chapter 11 case </li> </ul> </li> </ul> <ul> <li> <b>a clear overview of the Bankruptcy Code and Rules</b> </li> <li> <b>step-by-step guidance through the paralegal’s role</b> at every stage of a Bankruptcy proceeding </li> <li> a practical orientation to completing bankruptcy documentation and the time limits on those documents </li> <li> <b>thorough pedagogy</b> that includes: <ul> <li> examples </li> <li> checklists of procedures </li> <li> summaries of the law </li> <li> discussion questions </li> <li> practice exercises </li> </ul> </li> </ul> <ul> <li> <b>Forms Manual</b> on an accompanying CD-ROM </li> <li> <b>detailed Instructor’s Manual with Test Bank</b> </li> </ul> <p> <b>Updated to reflect developing case law interpreting the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) and other changes in Bankruptcy Law, the Seventh Edition also provides</b>: </p> <ul> <li> two new chapters devoted entirely to means testing: one chapter presents a substantive discussion of means testing and the second chapter gives a tutorial </li> <li> <b>Practice Pointers</b>, a new teaching device, are integrated throughout the text </li> <li> <b>Practice Exercises</b> are now included throughout the book </li> </ul> <p> Timely and up-to-date, the <b>Seventh Edition</b> of <b>Basic Bankruptcy Law for Paralegals</b> comes with a complete teaching package that will complement the pedagogy, coverage, and clarity of this highly effective text. </p> <p> </p> <p> </p>