Bankruptcy: The Real Deal
I don’t think there is another subject besides politics, religion or stocks that is as rife with wives tales, misconceptions, misinformation or people that are just plain wrong. I had this client who moved here from Egypt who was deeply in debt and thought he would go to jail. I explained that this is America and detailed how the Bankruptcy laws would help him. Among other things he could keep his house, fishing business, vehicles etc. He was so thrilled he wanted to kiss me. Not necessary, really, check or money order will work. Several days later he called me in a panic literally screaming into the phone. I said where did you get this information? Oh he said my barber told me! Well I said, you don’t want me to give you a haircut and you shouldn’t be taking legal advice from the barbershop.
I have been helping people file for bankruptcy since 1995. We have grown to become the largest bankruptcy firm by cases filed in Massachusetts. We aren’t blue blood legal scholars with bow ties but we are on the front lines every day helping families with serious financial problems keep their homes and raise their children. I have seen it all. Like an emergency room doctor on a 24 hour shift or an assistant district attorney in a big city criminal court.
Bankruptcy: The Real Deal: In short this is being written the same way I counsel my clients every day. There is no canned speech. Sometimes I will just start by responding to questions. Sometimes I start by asking the questions but one way or another we cover what the client wants and ultimately needs to know.
Bankruptcy Myths: Does filing bankruptcy ruin my credit for 7 years? Negative. In fact in most cases your credit will improve! By the time most people sit with me they have months of missed mortgage payments, car payments, and completely defaulted on their credit cards. The credit reporting agencies ding you each and every month you are late. Ding, ding, ding they ring your bell. When I file your bankruptcy case I ring their bell and knock them out right off your credit report. You start off fresh, with a clean slate. So every payment you make is a plus in your favor. Why do you think 1.6 million people file every year?
Why do you think the credit card companies and big fat cat bankers spent $100 million lobbying Congress to change the laws to limit you to one bankruptcy every eight years? I have had many clients come back after a few years to file again. They want to lend you the money even if you have filed bankruptcy before. Why? Because these companies are like drug pushers. Seriously. They want to lend you money at high interest and lock you into payments forever. Anyone who has ever had a credit card has had the frustrating experience of making payments yet the balance doesn’t change! If there is anything I have learned in life it is that the best way to predict human behavior is that humans will always act in their own best interests. The same applies to companies. Think of this, these corporations don’t manufacture anything, they don’t serve you a meal or fly you somewhere. They lend you money that they borrow from investors at 2 percent interest and lend it to you at 29 percent. Yeah, they do that. Yes they do. Surprised? They get back $129 for every $100 loaned for a year. Scale that up to millions and billions. The profits blow your mind. Outrageous? Maybe. Predictable? Absolutely. This is the real deal.