Let’s discuss your clients. It is time to dispel this urban myth that there people are not trying to cheat their creditors and file bankruptcy and just “get away with it.”
Court: It’s pretty rare. I don’t take on cases like that, and I’ve never had to refuse somebody because I’ve never felt that they were doing it that way. You don’t really see that. What you see are people that are in genuine financial stress that need help.
I would imagine that the people who are cold and calculating about it are more on the business side of things. Not that I’m complaining about that.
It’s part of the law and they’re not doing anything illegal but I definitely don’t see the kind of classic stigma of a bankruptcy filer who’s trying to go and use a credit card to max out the limit and then never pay it back. That doesn’t really happen.
Interviewer: Yes. It just seems to be out there, one of the myths of the immoral debtor. Or people on welfare, people think it is single mothers just trying to get money, but in reality it’s people that really do need help.
How Can Filing for Bankruptcy Help Your Financial Future?
Interviewer: Let’s say someone has $50,000 in debt and they’re going to file bankruptcy. Won’t that essentially be propelling you years ahead financially? Even if they had the strictest budgetary habits, it would probably take them years to pay off what bankruptcy could wipe away, is that right?
Court: Absolutely. Yes. You can come and see a bankruptcy attorney and be back to even in the matter of a day. Even if you only have a small amount of debt, say $10,000 or $15,000. Paying off those debts could take two years of savings, if you scrimped and saved every extra penny that you make. It might take you two years to pay off that whole amount.