Are your finances out of control? Has years of poor spending habits and bad budgets led you to where you can’t even keep track of what bills are due and when? If this is you then you should not feel any shame. You are not alone in this.
One of the most common causes of bankruptcy in the United States is improper budgeting and poor spending habits. As much as we would like to be financial geniuses when it comes to our budget we all know too well that life doesn’t always let that happen.
We try to make our budgets perfect, but a sudden cost here and a change in spending there can lead us to being in a bad place financially. As we struggle with our budgets it leads to a snowball effect where eventually there is so much debt you don’t know what to do about it. When this happens to you it can feel like there is no escape from your debts, but that isn’t true. You have options. You have bankruptcy.
Bankruptcy Will Not Ruin Your Life
A misconception of bankruptcy is that it is going to ruin your life and leave you with nothing at all. This isn’t true. While bankruptcy is not going to come without consequences of its own it is not something that is going to leave you with nothing to your name.
Bankruptcy is not a life ruiner. It is a life saver. It was created to help people who are so deep in debt that they will never escape from it and give them a way out. Some of the myths about bankruptcy include:
- You will never recover
- You can never buy a house again
- You will be left with nothing
None of these myths are true. Bankruptcy is by nature a recovery method. It takes all the debt to your name and erases it leaving you with a second chance financially. Many of our clients here at Blake Goodman are able to buy houses again while in the process of filing for bankruptcy, and while you may lose possession during bankruptcy you will not be left with nothing.
If you want to learn more about bankruptcy then schedule a consultation with our firm. We will teach you everything you need to know about your bankruptcy case and what is going to follow it. You will not be alone.
While following for Chapter 7 bankruptcy may seem scary, because of the potential liquidation of assets, you can be certain that you’ll make it out on the other end okay. Chapter 7 is the most common form of bankruptcy in the United States and that means many people have applied for it and returned their life back to what it once was, but without debt.
When you file for Chapter 7 bankruptcy your assets will be liquidated so you can pay off the debts to your name. This usually results in losing items such as:
- Extra houses
- Extra cars
- Valuable property
You won’t lose everything, however. Some of the items you keep when you are going through bankruptcy include:
- The equity in your home up to about $25,150 per person filing.
- Motor vehicles, up to a certain value.
- Reasonably necessary clothing.
- Necessary household goods and furnishings.
- Household appliances.
- Jewelry, up to a certain value.
- Tools of the debtor’s trade or profession, up to a certain value.
- Home equity (a portion.)
- A portion of unpaid but earned wages.
- Public benefits, including public assistance (welfare), Social Security.
Once your assets have been liquidized and you have finished the bankruptcy process you will earn the opportunity to start over. No debts to your name and a chance to budget more properly.
If you are filing for Chapter 13 bankruptcy due to poor spending you are likely doing so because you just can’t keep track of your finances. For those of you who are filing Chapter 13 however this is an opportunity to get everything organized.
When filing for Chapter 13 you will see all of your debts combined into a lump sum where you will then be able to pay it all off in monthly payments. Before you can file for this however you need to qualify for it.
To qualify for Chapter 13, a debtor must have:
- Regular income
- Unsecured debts of less than $419,275
- Secured debts of less than $1,257,850 (these dollar amounts are usually increased every three years according to a set formula).
At Blake Goodman we will be able to look at your financial situation and help you decide if you qualify for Chapter 13 bankruptcy, Chapter 7, or if you need bankruptcy at all. Schedule a consultation and we will discuss your situation together. The first consultation is FREE.
Are You Near Bankruptcy? Call Blake Goodman
If you think that you may be nearing bankruptcy then it may be time to call Blake Goodman. His firm can assist you during a time where you need help the most. If you’re worried that speaking with a lawyer will push you further into debt then don’t be. Consultations are free.
You can best contact our firm by using our phone number (808) 426-2004. We are always willing to help our clients get through tough times like bankruptcy. Do not let the loss of a job ruin your life and take you further into debt. Call Blake Goodman today. Bankruptcy may save you.
Not in Maui? Come see our other offices!
At Blake Goodman, we strive to help as many of you as possible. This is why we have offices in not only Maui, but in O’ahu as well. Be sure to check out our other website DebtfreeHawaii.com to read about our other locations.
You may be in need of help for bankruptcy in a place other than Maui and we want to help you. We will do our best to help any residents of this beautiful state. Everyone deserves someone to represent them during bankruptcy.