You Are Not Alone
Most of you are here because you need a way out and a fresh start on your finances. The bad news is that you might be hurting financially. The good news is that the bad news can be old news. Bankruptcy is a tool that can change people’s lives for the better.
The last few years have seen millions of people filing for bankruptcy and many more are in serious financial jeopardy. Recent economic surveys estimate that millions of more Americans are a single negative financial event away from insolvency.
Some credit card and ‘debt settlement’ companies will have you believe that credit card abuse is at the heart of bankruptcy filings. The simple fact is that millions of Americans file bankruptcy because of circumstances beyond their control: job loss, excessive medical bills, the downturn of the real estate market, or a family crisis such as a death or divorce. Credit card debt typically follows these other maladies, and are often used as a last resort for struggling families and individuals.
Alternatives to bankruptcy exist. However, proceed with extreme caution if you are considering “consolidation” or “credit repair” schemes.
Free Initial Consultation
A free initial consultation with Lund Law Office, SC will explore safer alternatives to bankruptcy depending on your circumstances. Your best move is always to seek professional legal advice before taking the ‘deal’ offered by the ‘debt settlement experts.’ Call our office at (715) 842-2500.
Your finances and credit can actually improve by filing bankruptcy, affording you the “fresh start” that the United States Supreme Court referred to:
“It gives to the honest but unfortunate debtor…a new opportunity in life and a clear field for future effort, unhampered by the pressure and discouragement of preexisting debt.” — Local Loan Co. v. Hunt, 292 U.S. 234, 244 (1934).
Foreclosure and Bankruptcy
Bankruptcy can be an invaluable tool in saving your home, managing mortgage arrears, or addressing deficiency judgments and sometimes bankruptcy is the only tool available to protect the most valued asset for most families: your home.
A Chapter 13 filing provides an option for you to catch up on your missed mortgage payments and taxes, provided your budget is solid enough to structure additional payments for up to five years.
If your current mortgage doesn’t make any sense at all and foreclosure is imminent, a Chapter 7 bankruptcy can eliminate any personal liability you may have related to the notes used to finance your home. Many people overlook that a bank can pursue you for a deficiency judgment after a foreclosure, or in the case of a second or third mortgage holder: sue you outright for the unpaid balance on the mortgage note.
Medical Bills and Bankruptcy
Medical bills are unsecured debt and can be discharged by filing bankruptcy. In fact, one recent study found that:
- 1) 62.1% of all bankruptcies have a medical cause;
- 2) Most medical debtors were well educated and middle class;
- 3) Three quarters had health insurance.
- 4) The share of bankruptcies attributable to medical problems rose by 50% between 2001 and 2007.
How this has come to pass is beyond the subject of my website, but the medical expense epidemic seems here to stay for the foreseeable future. Don’t we all miss the good old days, when you broke an arm, you could walk into the doctor and pay up front to get it fixed, cast and all for something that was affordable or with payment plans that were reasonable? I digress….
Will Bankruptcy Stop Wage Garnishments and Collections?
A garnishment or collections action can severely impact the lives of an individual or family. Once a bankruptcy is filed, creditors may NOT garnish your wages for debts that existed at the date of filing, unless for court ordered child support or maintenance. In fact, if they’ve recently garnished money, you could have a chance to get some of it back.
Will I Lose Everything When I File For Bankruptcy?
No. Each individual who files for bankruptcy is entitled to “exemptions”, which dictate how much property will be left over for a “fresh start.” Wisconsin allows a debtor to choose either the state exemptions or the federal exemptions. Contact the Lund Law Office to determine which exemptions you should use for your particular case.
Should You File Bankruptcy?
The Lund Law Office isn’t a ‘mill.’ Each case is different. You need to consult with an attorney to know what’s right for you. Endless hours on the internet searching message boards and advice from forums are no substitute for specialized advice when it comes to deciding whether you should file for bankruptcy or not. The Lund Law Office offers a free confidential consultation without any obligation on your part whatsoever. Call us at (715) 842-2500 to set up an appointment.
You may have alternatives outside of bankruptcy available to you. You also need a thorough analysis to determine which chapter of the bankruptcy code your case will be filed under, and what assets you’ll be entitled to keep after filing.
Wausau Bankruptcy Lawyer Brad Lund of the Lund Law Office, SC is a dedicated bankruptcy attorney, assisting people to file for bankruptcy relief under the United States Bankruptcy Code. Mr. Lund is admitted to the Bars and US District Courts of the States of Wisconsin, Colorado and Wyoming, and actively licensed in Colorado and Wisconsin. Brad is a proud member of NACBA: the premier consumer bankruptcy attorney organization in America. With experience of personalized bankruptcy service, his office is located in the heart of Central Wisconsin and dedicated to service all your bankruptcy needs. Contact Mr. Lund of the Lund Law Office today for further information or for a free initial consultation.
The information contained in this web site is general information regarding the law. Nothing contained herein constitutes the formal rendering of legal advice, nor can it create an attorney/client relationship by your visiting this web site. The law changes and only a consultation can confirm anything you may have read on other websites, including this one.