whyfile

Do Not Feel Guilty

Bankruptcy is about starting over fresh. It is about getting back in control of your financial future. Do not feel any shame for considering bankruptcy. In today's economy, many people, from all walks of life, are in your situation. I have clients who were making $150,000 plus last year and live in very expensive homes. Then again, we have an 22 year olds who started out in life with $25,000.00 in debt (thanks MC/Visa/Amex) due to "free" credit cards. Who gives an such young kids $5,000.00 credit lines? Credit card companies.

Mr. Sliwinski, Esq. has handled hundreds of bankruptcies since 1991. He has not once ever had a client advise him that they regretted filing for bankruptcy.

Bankruptcy Is Not Your Fault

Take control, feel no shame. Bankruptcy is not your fault. You cannot control the economy, your job situation, your health, or that divorce that ruined your finances. We live in a consumer society. The entire society has been brainwashed to charge and charge. However, you can take back control of your life by contacting a bankruptcy lawyer. Stop the harassment! Stop the 10 calls a day from the annoying debt collectors! Stop the endless collection letters that change color ever month! Personally, I would get sick of receiving red mail.

The Credit Card/Debt Trap

Credit card companies have been begging you to charge up at 23% (some 24.99%) for years. How many "account balance" transfer offers have your received. How many new extensions of credit. Here's the trap, after you have established a decent payment history with a credit card company, they up the credit limit. "Congratulations," they say. Now that you have more credit, you spend it. They will keep upping that credit limit until you can barely make the minimum payment. Now they own you. Make the minimum payment on your Master Card or Visa and you will be paying that debt for 35 years or more.

Credit Card Debt Management and Consolidation Services

Credit card counseling and debt management services - we don't buy it. Numerous clients have come to us after using a debt management company. Most have advised me that these companies are scams. Many clients have come to me, and they have asked me to try to get back their money from the credit counseling services. Many clients have advised me that the credit counseling service charged them more than a lawyer would, and that they received no benefit by using the consumer credit counselor.

Furthermore, some counseling services require you to give them your paycheck. They take their fee, pay the credit card companies a payment, and then give you a monthly stipend. Don't do this. Take control of your life, and stop the insanity. Don't lose control of your financial future.

Please be further advised, that if you breach your contract with a debt management company, then you will lose all the benefits you have gained - penalties and interest all gets put back. They are right there on your credit report as Debt Consolidation Service or Credit Management. A negative entry that tells creditors that you are a bad credit risk. Consumer bankruptcy attorneys are about empowering you and letting you live again in peace. Stop hiding. Don’t you want to be able to answer your phone again, without fearing that it could be another collection call?

Getting Credit After Bankruptcy

Are you concerned about the state of their credit after filing bankruptcy. It is a hard cold fact, that a bankruptcy discharge will appear on your credit report for 10 years following the discharge. This does not mean that you will not get a credit card, buy a home, or car for 10 years. Far from it, creditors want you to borrow. Shortly after your bankruptcy discharge, it is almost a certainty that you will receive a credit card offer. You will get credit following your bankruptcy.

Once a person files bankruptcy, then they will have more disposable income. Therefore, many credit card companies, and car dealership will provide a debtor credit after they file. The reason why a debtor can restore their credit after they file is because; 1) The person no longer has a large debt load after the filing; 2)The person now has an ability to repay any new debts because their disposable income has been “freed up” and 3) the person can can't declare bankruptcy (Chapter 7) again for six years. Further, the probability of a consumer declaring bankruptcy a second time in their lifetime is very low.

The choice of the chapter depends on many factors individual to your situation, and is one of the most important reasons to get good legal advice before filing. Which chapter is best depends on the nature of your debt and the nature and value of your assets.

Chapter 7 is the most frequently selected kind of bankruptcy for individuals. The debtor receives a discharge of most unsecured debts within several months of filing the case. If the debtor's income appears high enough to permit some repayment of debt, the trustee or the court may move to dismiss the case for "substantial abuse". The theory is that to permit someone with the ability to repay to file Chapter 7 and avoid repayment abuses the bankruptcy system. This is termed "substantial abuse" - catch phrase with the U.S. Congress.

If your debt is mixed business and consumer it is important to know what the legal form of the business is. Sole proprietorships are treated for bankruptcy purposes as just one kind of asset of the individual who owns them; thus the owner of a troubled business must file an individual bankruptcy, including all of his assets and liabilities, personal and business, to obtain bankruptcy court protection.

Chapter 13 is frequently a better choice if you have debts that are not dischargeable in Chapter 7; if you are in default on mortgages or car payments; if you have more property than can be exempted from creditors in Chapter 7; or if you owe taxes or other debts that are not dischargeable in Chapter 7.

To be eligible for Chapter 13, you must have regular income and debts below a certain level.

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