Don't be Caught Exposed in Your Bankruptcy Filing!

You would be amazed at the kind of calls I receive in regards to bankruptcy here in Denver!  Here is a typical example of what I have to endure.

Annoying Caller: Hey, are you a bankruptcy lawyer?

Me: Yes, how can I help you?

AC: I just have a quick question.

Me: OK, what is it?

AC: My ex-wife is trying to file for bankruptcy and I want to make her life hell.

Me: Is that a question?

AC: Ummm..  No, how can I make her suffer?

Me: Just talk to her.  I think that should do the trick.

AC: Huh? No, I want to make her life hell. 

Me: I am guessing you already have.  Goodbye.

I am a bankruptcy attorney in Denver, not a means to make people you hate suffer.  I want to help people who have legitimate financial issues come to a speedy resolution with their financial problems.  I did not go to 7 years of school just to make people you hate suffer.  Now, if you want real help, here is what you can do to make this more pleasant for us both.

1. Have your finances in front of you before we do our free initial consultation.  Obviously, you don’t have to have it all worked out when you call to schedule…  but you will before we meet.  This saves me time and in turn, saves you money.
2. When you call, know what you are looking for.  Are you wanting to set up an initial consultation or are you looking for free advice, but don’t really want help filing.  Either is fine, but I hope if it is the latter, you will at least take the time to read all of the helpful articles on bankruptcy BEFORE you call.  I am trying to make a living, like you, and I can’t afford to be do pro bono (free) work all day.
3. When you come to the initial consultation, have all of your assets and all of your liabilities listed in either a spreadsheet or at least on a sheet of paper divided down the middle.  Be as exact as possible.  Include any upcoming assets or liabilities on this sheet.
4. Do not waste time following the instructions you are given for a successful filing.  A bankruptcy requires real work.  If you are not prepared to go through some hoops and do some legwork, please save us both the headache of working together.
5. Don’t be afraid of listing everything.  Some people get embarassed about their financial situation.  I am here to help, not to judge you.  So if you are transparent and list everything, we can take care of you much better than if you don’t.  Anything not included does not go away (FYI)

Preparation and a serious approach to a bankruptcy filing are the pillars of our practice.  We are not here to hurt people or to make lives miserable.  If you are calling for that purpose, please don’t.  If you need real help for a real bankruptcy filing in Denver, we would love to help!

$94,000 in Student Loans (About $500 per month with his current structure)!

$9,200 in Auto Loans (About $250 per Month)

$12,400 in Credit Card Debt ($300 per Month Minimum)

$700 per Month in Rent

$600 per Month for Food

$400 per Month for Medical (Depression and Stomach issues) with a backlog of $11,000.

$100 per Month for Cell Coverage

$500 per Month for other incidentals (such as Cable, Clothing, Gym Membership, Toiletries, Entertainment)… 

Monthly Income — Private Christian School — ($2,200 per Month after taxes)

So, when he walked in, he was outlaying about $2,950 per month, but only bringing in $2,200.  Not a good start.  Some people will want to immediately talk about bankruptcy, but this is a case where some common sense and lifestyle changes were drastically needed.  Paul had some good computer skills, but didn’t really capitalize on these skills being so challenged with his budget.  The first thing we had to do was to look and see what the POTENTIAL could be for Paul if he re-structured…  So we worked out a budget where he had these payments, while hopefully eliminating harassing calls and get him in a better position…

Student Loans (Defer– With no penalty due to hardship)

Credit Cards — Worked the Interest Rate Down (Was at 26%) — Kept same payment — $250

$9,200 in Auto Loans (About $250 per Month)

$700 per Month in Rent (Had 2 Rooms, recommended a roomate –$350)

$350 per Month for Food

$100 per Month for Cell Coverage — Changed plans to a $50 per month plan

$500 per Month for other incidentals (such as Cable, Clothing, Gym Membership, Toiletries, Entertainment)… Reduced to $300 per Month.

New Totals:    $1,600 outlay

Income: $2,200

There was still work to be done, finding grant money for the schooling, helping to keep track of the budget, but what Paul needed was not bankruptcy, just some better habits and a little counsel.  Within a year and a half, the credit card debt was gone.  The car is almost paid off and there were forgiveness plans available on a large part of his student loans.  We will not always rush you to bankruptcy when good alternative habits are available, sometimes though, the hole is too big and we need a fresh start.  Medical bills are a big culprit for us when clients have bills so astronomical, they’ll never catch up.  Paul had a bad situation, but it was manageable, others take his situation and triple the liabilities which is impossible to fix with “re-arranging”