Bankruptcy

A Debt Settlement Company Boinked Us! Non-bankruptcy Alternatives that You Might Want to Avoid!

By Joseph McDaniel, Esq.

Now, I undoubtedly see a bigger slice of refugees from non-bankruptcy options than most folks, because I'm a bankruptcy attorney in Arizona, and we're currently number two in the United States on houses in foreclosures and trustee's sales.

So when the non-bankruptcy alternative doesn't work, I get to pick up the mess and tidy things up.

But by that time, there may be serious problems, because when I see a client for the first time makes a difference.

I can scrape off a lotta debt any old time (assuming we can do the means test lambada with the client), but if a client has been sued, and a judgment obtained against him, and garnishment instituted, and he's been sucking money out of his 401(k) to make up the difference caused by the garnishment and the massive increases in the credit card debt caused by the increased interest charges, he's a lot more time, trouble, and expense to hose off than somebody with less history.

Can I do it?

Maybe.

But it ain't that easy.

The fairly direct analogy is somebody who has let that little toe problem turn into gangrene which requires a leg amputation (hopefully involving a good stump, you know?) and extended periods on intravenous antibiotics, which would not have been required if they hadn't ignored that darn blister!

Note: there are "Payday Loan" operations out there that will ignore the automatic stay, and stay hidden in darkness. Apparently they operate entirely online, so finding a brick and mortar store to serve and sue is impossible, and they don't care about the discharge, either. So if you got a payday loan, you might want to consider finding a new bank and bank account when you're certain you'll be filing a bankruptcy, for the simple reason that the automatic system plugged in the bad, bad payday loansters won't work out of that new bank account.

That's only a thought, of course, and not legal advice, because you aren't yet a client.

Of course, if this darn economy doesn't improve, that's just a timing issue!

NOTHING HERE CONSTITUTES LEGAL ADVICE RE A CHAPTER 7, CHAPTER 13, CHAPTER 11, OR CHAPTER 12. FIND AN ARIZONA BANKRUPTCY LAWYER WHO IS BOARD CERTIFIED IN BANKRUPTCY LAW, AV RATED, AVVO 10 RATED, ON SUPERLAWYERS, OR JUST VERY EXPERIENCED AND A FORMER CHAIR OF SOME BANKRUPTCY SECTION OR COMMITTEE. NOTHING HERE MAY BE USED AS LEGAL ADVICE IN CONNECTION WITH ANY BANKRUPTCY, WHETHER THAT BANKRUPTCY IS IN PHOENIX, GLENDALE, TEMPE, MESA, SCOTTSDALE, OR ANYWHERE ELSE.

Full post as published by Arizona Bankruptcy Attorney Blog on July 18, 2010 (boomark / email).