Bankruptcy Case Examples

We represented a married couple with over $1,000.00 of household income. In the process of paying 2 separate tuition bills for 2 college-aged children, they incurred over $140,000 of credit card debt. Prior to meeting with me they were paying over $3,000/month on credit card minimum payments and not making a dent in their balance. We put them into a Chapter 13 repayment plan that paid back their less than $100,000 of their $140,000 of unsecured debts over 5 years at 0% interest. This reduced their monthly credit card payments in half and eliminated their debt instead of continuing to pay $3,000/month for the rest of their lives. All without losing any property.

After their case was completed, the wife was able to retire, collecting her pension, and start a new job. The married couple were now debt free, making more income than before filing and once again saving after eliminating their debt payments. In this case (like all cases), we eliminated their debt, kept what's important to them, and restored their financial health.

We filed for bankruptcy for a gentleman in his 30's that was injured at work. During the process of filing a Workers' Compensation claim, his income was reduced and he couldn't afford to pay some of his monthly bills. We advised him what he should pay and what he could stop paying during this time, including helping him and his family delay an eviction so they could transition to a more affordable residence. This allowed him to make ends meet while he regained his health and waited for his settlement. We filed a Chapter 7 bankruptcy to eliminate his approximately $30,000-$40,000 of medical bills, credit card debts, lease deficiency, and car repossession, while protecting his $75,000 Workers' Compensation Settlement.

Without the financial pressure created by these debts, he was able to take the time to pursue appropriate medical procedures to regain his physical health. He returned to work debt-free and physically healthy. In this case, we eliminated his debt, kept what he needed to put his work injury behind him, and helped restore his and his family's financial health.

We represented a woman who filed for Chapter 13 bankruptcy relief to save her residence from foreclosure. At the time we filed her case, she was behind on her mortgage payment by an eye-popping $79,000. In her case, we enrolled her in Bankruptcy Court's Loss Mitigation Program. The Bankruptcy Court established the Loss Mitigation Program to help debtors streamline the often frustrating, time consuming, and complicated process of applying for a mortgage loan modification. The Bankruptcy Court oversees the loss mitigation process to ensure that debtors' loan modification applications are timely reviewed and forces otherwise reluctant mortgage companies to participate. Upon our submission of the Debtor's loan modification application, the Debtor was recently notified that she was approved for a Trial Loan Modification that lowers her monthly mortgage payment from $1,333 to $1,225 by reducing her interest rate and extending the term of her mortgage.

Right now, if she continues to make this payment for 60 months she will be current on her mortgage, officially out of foreclosure, and have a new reduced monthly payment. In this case, we were able to level the playing field with her mortgage company, relieve the anxiety that comes with being behind on her mortgage, and save a home that is critical to her financial health.