2012 has been a very difficult financial year for many people in Omaha and nationwide and it seems to be getting worse. Something is definitely not right with the economy and many good people are finding themselves facing bankruptcy for the first time. This is a sad situation for our country and we can only hope for a dramatic change in economic trends soon. Ironically, most people think that bankruptcy attorneys are busy because the economy is so bad. However, just the opposite is true. The ironic fact is that so many people are unemployed, under employed or just off the economic grid that an overall decrease in bankruptcy filings is occurring at staggering rates nationally. Heck, you know it is bad when people are too broke to file bankruptcy in Omaha!
Many everyday people and small business owners are facing impossible financial challenges. In simple terms, a large number of people are just flat broke; so broke, in fact, that they find it even a challenge to file bankruptcy. I hear this every day when I meet with prospective clients. How can I afford to file for bankruptcy when I don’t have any money left over? That’s a fair enough question and an issue that needs to be worked through on a case by case basis to get people the financial help that they need. There are some affordable options.
While every dollar counts when you are broke, there is ordinarily a practical solution to funding an affordable bankruptcy filing. Here are just some common examples of what many of our past clients have done to get their bankruptcy cases filed:
- Borrow or ask for financial help from relatives or friends (but make sure that you tell them why you need the money and that you will need to list them on the bankruptcy if they expect to be paid back…You can voluntarily pay them back after the bankruptcy is over);
- Sell some of your unnecessary assets (be sure to keep good records of what you sold and try and get fair market value);
- Make monthly payments to your bankruptcy attorney BEFORE the case is filed;
- File a Chapter 13 bankruptcy. (Normally, it costs less than $400 to get started);
- Stop paying unsecured creditors (if a bankruptcy is definitely going to happen in the relatively near future);
- Withdraw the necessary funds from a 401(k) or IRA;
- In extraordinary cases, the bankruptcy court costs can be temporarily delayed for about 90 days.
Certain things you should NOT do to generate the bankruptcy fees:
- Take a credit card advance;
- Incur debt (other than with a close friend or relative after fully disclosing to them what you plan on using the money for);
- Sell or transfer assets for less than fair market value;
- Use payday loans
At John T. Turco & Associates, P.C., L.L.O, we know that a number of people are really hurting and we will do whatever we can to help them through the process of filing bankruptcy very, very quickly and in an affordable manner. Contact us today for immediately help!
Part II of Nebraska Bankruptcy Exemptions: An Introduction