What if my Bankruptcy makes my creditors angry?

Creditors are scary folks and aren't known to be understanding when your back is to the wall and you're stuck in dire straits. If they were, you would never need to consider Bankruptcy.

Speaking of which, people worry about how creditors will react when the word Bankruptcy is brought to the table. Will they release the hounds?! Will they stalk me in the streets?! Will they spring a trap door beneath my feet?!

Not exactly. In fact, that's pretty far from how they'll react. Let's discuss how Bankruptcy causes Creditors to evaluate you differently...

What does Bankruptcy mean to a Corporation?

Some might think that Bankruptcy rules change when a corporation steps up to file.

In some ways, they'd be absolutely right. In others, not so much.

Let's flesh a few of those details out as we discuss what Bankruptcy is like for a business as opposed to a consumer.

Filing for Bankruptcy forces you to think of the future

For young folks clearly too "immortal" to consider it and for older folks too young to be bothered with it, Bankruptcy is a thought provoking experience.

Retirement is something that happens to a lot of us. Or at least something we WANT to happen to a lot of us and we'd all like to ENJOY said retirement, so a well-planned and financially cushioned retirement is what we all hope to be stuck with.

But things happen. Bankruptcy happens. Why should Bankruptcy change your outlook on the future? Let's chat about that...

Is a Professional License Bankruptcy-proof?

Even formerly highly-paid professionals are being hit hard in this depression.

Why does a Chapter 13 Bankruptcy Appeal to You?

I see a lot of people who have friends and television.

They have strange ideas about how the process works and often come in with either incorrect to very dated ideas about Bankruptcy. Chapter 13 used to have a lot of useful advantages. Then 2005 came along.

These days I have a pretty strong prejudice against a Chapter 13.

Because I tend to like my clients!

And making them suffer for five years seems a little harsh to me.

Discounts are cool. Sadly, the Pity Pitch Doesn't Work as Well in Bankruptcy as You Might Think!

Does all your massive debt invite a discount because you have so little money?

Well, if you're meeting with me, I'm going to factor in everything to see how much work I'll need to do on your case, and only then can I quote you a fee.  See why it's important to do your homework?

Let me explain...

You either PASS the means test or you don't file.

Seriously, it's THAT important. You either pass the means test or you don't file.

Period.

Sounds scary, right? Let's talk.

Surprisingly, there are ways to deal with the stinking means test; none are a lot of fun, except for one.

Reasons to File a Chapter 13 Bankruptcy instead of a Chapter 7 Bankruptcy

Okay, I have opinions. One of my opinions is that it's better, in a bankruptcy context, to get a discharge without having to suffer through a three-to-five year payment plan.

You know?

And I know that there are law firms that try to force you into a Chapter 13 because the legal fees are higher, and they can hornswoggle you into thinking that you got a great deal on your fees because the initial payment to your lawyer is small; but the rest of the dough to your lawyer gets paid through the Chapter 13 Plan, Bucko!

Anyway, here I am being a smart-aleck about Chapter 13 bankruptcy cases: