Just about every person I meet with at Halcomb Singler, LLP, regarding bankruptcy has one thing in common. Each person tells me that they have always been current on their payments, that their credit score was always in the 800s and that their parents raised them never to file bankruptcy. In short, no one is ever very excited to meet with me to discuss their financial options and whether a Chapter 7 or Chapter 13 bankruptcy would benefit them. But, in my opinion, this is a good thing. It means that we live in a society where folks most often really do want to pay their debts.
Unfortunately, people cannot always meet their financial obligations. In the past few years I have filed bankruptcy petitions on behalf of people who have been out of work for months if not a year or more. I have filed bankruptcy petitions for people with emergency medical bills in excess of $50,000.00. I have filed bankruptcy petitions for people forced to close down businesses that had always been successful because their clients could no longer afford to pay for their merchandise or services. The bottom line is that the economy is not good right now and hasn't been good for several years. Many people who never intended to miss a payment on a bill now have to choose between paying their electric bill and paying their medical bill. I believe that the majority of the bankruptcy petitions I have filed in the past 3 years are mostly due, whether directly or indirectly, to job loss.
Most people who find themselves in the situation of needing to file bankruptcy were making good money when they opened a credit card account and have been making payments on that account for years. Most have done everything they can think of to make the payment including borrowing from relatives, cutting back on other expenses and entertainment and attempting to earn extra income. Most people tell me that they spent the money on that credit card bill or received the services from that medical bill and want to be able to pay back that money because they owe it. Overall, most of the people that I speak would do just about anything to avoid having to file for bankruptcy.
However, every person has his or her tipping point. By the time that folks call my office they have often received notice of a lawsuit, have had a bank account frozen, or have received notice of a mortgage foreclosure lawsuit. When people call my office they are typically to the point where they cannot think of any other way out of debt, their creditors will only accept the full amount due on debts and are no longer taking payments, 25% of their paycheck is being withheld for garnishment and they are overwhelmed by a feeling of hopelessness.
So, before you speak about a person you know who filed bankruptcy as a deadbeat remember that it is tough times right now in Indianapolis and the surrounding areas. Ask yourself how long you could survive without any income. How long would your emergency fund last? How long would it take for you to use all of your retirement? (If you have read my other postings you know that you should speak to a bankruptcy attorney before taking distributions from your retirement). Ask yourself if given the choice if you would buy groceries or pay your credit card bill. Ask yourself whether you, if put in that situation, would ever contact a bankruptcy attorney to consider your options.
While I still believe it is a good thing that most people would rather pay their creditors than file for bankruptcy, I am often frustrated by how quickly people judge those who have filed for bankruptcy. While I hope that every person that reads this post will lead a long and healthy life without ever enduring the stress that one considering bankruptcy feels on a daily basis; the reality is that in these difficult economic times you never know what could happen. So, think about it before you assume that someone who has filed a bankruptcy is worthless, lazy or a deadbeat.
If you are a person who is carefully considering bankruptcy and live in Indianapolis or the surrounding areas (Fishers, Noblesville, Carmel, Zionsville, Tipton, Kokomo, Anderson) call me, Erika Singker, at 317-575-8222. I will meet with those considering bankruptcy at my Carmel office for a free one hour consultation and make a recommendation as to whether or not I believe filing a bankruptcy would assist with your financial difficulties.
Halcomb Singler, LLP, is a debt relief agency. It helps people file for bankruptcy under the bankruptcy code. No attorney-client relationship with the firm of Halcomb Singler, LLP, is created through this blog. Also, please note that Erika Singler is an attorney licensed in Indiana and does not seek to practice law in any jurisdiction in which they are not properly authorized to do so. The information contained in this blog is general in nature and should not be relied upon for the circumstances of any individual(s) or businesses.
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