You have gotten as far in your plans to file for bankruptcy as reading the bankruptcy FAQ page of the website of your county’s court system; therefore, you know that, at least in theory, no one is too rich or too poor to file for bankruptcy. Of course, you are probably reading this website on the screen of a phone that costs more than the filing fees for a bankruptcy case while goofing off from a job that pays more in a day than minimum wage workers earn in a week.
You still have the right to file for bankruptcy if you are unable to pay your debts, even if most people would find your overall financial situation admirable. Strictly from a numerical perspective, you have more to lose than someone who files for bankruptcy, having never owned real estate and after being forced out of the workforce due to ill health, with medical bills piling up faster than the applicant’s disability checks can make a dent in them. If middle-class lifestyle creep has made your financial situation untenable, contact an Oakland Chapter 13 bankruptcy lawyer.
Poverty is Neither a Prerequisite Nor an Inevitable Consequence of Filing for Bankruptcy Protection
The purpose of bankruptcy laws is to prevent people from being reduced to poverty if they cannot repay their debts. Given that it is legal for lenders to charge compound interest at high rates and to assess recurring late fees, it is easy for the outstanding balance on your debts to add up to many times the amount you originally borrowed. The original target audience of bankruptcy protection was people who, without these protections, would be destitute, the people who would be at risk of going to debtors’ prisons if debtors’ prisons were still legal. Big businesses with a net worth that exceeds yours by several decimal places can and do file for bankruptcy protection. Filing for bankruptcy is not just about avoiding the worst-case scenario; ultimately, you are settling your debts for less than the face value amount, negotiating the fees down to something reasonable.
How to Land on Your Bougie Feet After Your Bankruptcy Case
One of the biggest worries facing applicants in bankruptcy cases is the fear of the bankruptcy court liquidating their assets. The greatest reassurance you can get that the risk of the court liquidating your assets is negligible is to file for Chapter 13 bankruptcy protection instead of Chapter 7. In a Chapter 13 case, the bankruptcy court negotiates with your creditors to reach a settlement amount for your eligible debts, and then you pay it in monthly installments for several years. You can only qualify for Chapter 13 bankruptcy if your income is high enough. It is one of the most painless ways to reduce a debt burden that is mostly the result of lifestyle creep.
Contact the Law Office of Melanie Tavare About Filing for Bankruptcy After Keeping Up With the Joneses
A debt relief lawyer can help you if you are considering filing for Chapter 13 bankruptcy. Contact the Law Office of Melanie Tavare in Oakland, California, or call (510)255-4646 for a case evaluation.
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