How Recessions Affect Bankruptcy

We have all seen the effects of an economic downturn.  There is a strange problem that can occur as a result of the “means test” that determines whether a person would qualify for a Chapter 7 Bankruptcy or a Chapter 13 bankruptcy.  Data which is compiled by the US Census is always behind a bit as it requires reporting of data.  If someone loses their job today, it is most likely to hit next year in the means test data.  So, if the average in Colorado is $45,000 per individual today (it’s not, but trying to make this easier to understand) and with people losing work, maybe it should be $40,000 — your case will be based on the $45,000 until the Census catches up.  Seems simple, what’s the big deal? 

If you are having to file a Chapter 13 Bankruptcy instead of a Chapter 7 Bankruptcy in Fort Collins, your legal costs will more than double, it is a lot more work and your relief is less.  It doesn’t affect those people who are making next to nothing, but those on the precipice are the ones who tend to get screwed.

If you are close to the median state salary and your expenses are high, but not BRUTAL, you may get hosed over due to this small differential.  Our job as bankruptcy attorneys in Fort Collins is to do what we can in terms of helping you disclose every legitimate debt and all earnings and make the best case we can for your financial well being.  There will be a few of you who we feel should be able to qualify for a Chapter 7 Bankruptcy due to real financial calamity, but we’ll have to do a Chapter 13 bankruptcy filing instead.

Given the changing laws and the importance of doing a bankruptcy filing correctly, we always recommend you go to an attorney.  Even if you choose to use someone else, which we don’t want, we still believe since bankruptcy law is challenging, you should avoid Do It Yourself bankruptcy  because making mistakes only put you in further jeopardy. 

If you would like a free Bankruptcy consultation to determine if you would qualify for Chapter 7 bankruptcy in Fort Collins, Chapter 13 bankruptcy in Fort Collins or neither, please give us a call!

Are You Too Busy to Think About a Bankruptcy?

Debt has a funny effect on the lives of people who have to deal with it on a day to day basis (and who doesn’t in one way or another?)  We see mounting bills and they keep piling on in and then we see the little amount of cash coming into the coffer, we get stressed out, take on another job or two…  can’t take care of ourself, get sick, more bills, etc, etc…

When you get trapped into the deep debt cycle, there is very little that seems like can be done.  Considering bankruptcy would be interesting, but really, who has time for that?  And isn’t declaring bankruptcy (Chapter 7 or Chapter 13) kind of admitting defeat?

For people in this painful cycle, you should consider a no cost bankruptcy consultation.  Our attorneys work hard to keep your energy and time committment at a minimum, and realize there can be emmense value to a fresh start.  If you would like a fresh start on your finances, if you have hit the end of your tether, give us a call for a Fort Collins bankruptcy consultation!

Your Checklist of How to Make Life Miserable!

This article is for all those people that enjoy suffering.  If you re one of the people who think suffering is fun and that stress is good for the soul, here is an article for you.  Follow these simple steps in your financial life and you will be stressed out and more miserable than you could imagine.

• Overspend — This is a key to adding stress.  Don’t actually write out a budget and definately don’t stick to it!
• Accrue more debt — If you can get more credit cards, buy a car, get another house, have some botox done…  whatever it takes!
• Make sure you are always late on your payments so that you can pay the extra fees associated with the late charges.  DO not, under any circumstance call the creditor to tell them your situation and work something out…  that will not add stress to your life like you may want, it’d actually reduce it a bit.
• Get behind on your house payments.  This is great for increasing stress knowing you may be on the street at any time.
• When it finally does hit the fan, do a bankruptcy filing yourself.  It is an amazing way to increase the stress in your life.  If you are going to file a chapter 13 bankruptcy in Fort Collins, you LOVE this.  It is one of the most stressful filings out there and you definitely won’t want an experienced bankruptcy attorney to help you in your case!

If you want something a bit more pleasant and if you don’t like to suffer, if your bills are already out of control and you are more stressed out than you want to be…  giving us a call should be the action item for you.  We work hard as Fort Collins Bankruptcy Attorneys to make your life more peaceful and your financial woes to go away!