Bradford W. Botes's blog

For some reason, although it may be in their best interest to do so, people avoid meeting with bankruptcy attorneys.  Folks that do come in to see us often tell us that they put off doing so for days,weeks or even months.  In many cases, we could have done a lot more to have helped them if they had come in earlier.  Our clients tell us that they were embarrassed about  calling our office to schedule an appointment.  They felt like it meant they were a failure.  If they just waited a little bit longer, things would get better.  Instead, things often got worse.

This question, or some form of it, is asked by virtually every person that comes in to see us to discuss their financial problems. The answer is usually fairly simple. By the time they have come in to see us, their credit is already ruined! This doesn't necessarily mean that they have a bad credit score. Some folks manage to keep making minimum payments each month. Unfortunately, this is often done by taking cash advances against another card and or borrowing money from a payday loan store.

We often hear about corporations filing for bankruptcy reorganization. American Airlines, General Motors, Chrysler and Lehman Brothers are just a sampling of those which have filed to restructure their debt through a Chapter 11 bankruptcy. Here in Alabama, we have seen Jefferson County file for bankruptcy reorganization pursuant to Chapter 9 of the bankruptcy code. Family Farmers and Fisherman are allowed to restructure their debt utilizing Chapter 12 of the bankruptcy code.

Many people that come to see us about bankruptcy are concerned about losing their property.  There is a misconception that, upon filing for bankruptcy protection from one's creditors,  the court will take your home, car, and furniture.  The truth is that, in the vast majority of bankruptcy cases filed by individuals, absolutely no property is taken or sold by the court.

When going through any sort of financially trying times, it is perfectly normal to feel overwhelmed. From large amounts of credit card debt, impending foreclosure, or expendable income slowly being eaten away, money-related stress is seemingly everywhere these days.

Even when the decision to file for bankruptcy has been made, money-related stress doesn’t completely disappear. It is important to keep everything in perspective, though.

In this blog, we have covered a few tips to help individuals reduce their debt burdens and the stress that inevitably comes along with it.

It is no mystery to anyone reading this that debt is undesirable. While it is sometimes necessary, the truth is that paying interest to an individual or bank that lent you money is essentially throwing money down the drain.

A common bankruptcy myth is that it takes seven (7) years after filing bankruptcy before you can get new credit. This is simply untrue. Any kind of bankruptcy can be reported on your credit for up to ten (10) years but this does not mean that you can’t obtain new credit during the ten (10) year period. In fact, most of our clients receive letters shortly after they receive their bankruptcy discharge with offers of new credit. Many automobile dealerships advertise that they will finance a car purchase following a bankruptcy discharge.

In today’s world, ‘debt’ is a 4-letter-word. For the vast majority of the people who hear the word, it brings to mind stressful feelings, and possibly painful memories.

It would be fantastic if we were all able to live a life completely free of debt, but it is often a necessary evil. Buying a house almost always requires being approved for a loan from the bank, and the same usually goes for buying a new car.

In my opinion, no attorney can provide a consumer with more relief, more quickly, than a bankruptcy attorney. On the day a bankruptcy petition is filed, in fact at the very moment the petition is filed, the bankruptcy court enters an order called an automatic stay. The order is entered pursuant to the provisions of section 362 of title 11 of the United States Code.

Virtually every person that comes to see us to talk about a potential bankruptcy filing asks us this question in one form or another. They may have been told by a friend that bankruptcy will ruin their credit. Another has heard that they won't be able to get new credit for 7-10 years. In short, most folks want to know how a bankruptcy filing will affect their credit.