A Single Mom Makes the Decision to File Bankruptcy

Our client, a single mother of one, contacted us as she was about twenty thousand dollars ($20,000.00) in credit card debts. While this may not seem like a lot at first glance, given her salary and financial situation, this $20,000.00 seemed almost insurmountable. To further complicate things, one of the creditors had filed a lawsuit against her for close to half of her overall credit card debt load. Our client could not come up with a repayment plan that would be acceptable to the creditor, while still allowing her to meet the ongoing necessary expenses for her and her child. By way of example only, our client had less than $30 left over each month after paying her bills.

While the outstanding credit card debts may seem small to some, these debts made a huge impact on our client’s financial landscape. With these debts as a concern, she was forced to make some very hard decisions about the basic necessities for her small family. Furthermore, it affected her extended family, who at times had to assist in making ends meet.

After reviewing the situation and discussing same with the client, we jointly agreed on pursuing a discharge in a Chapter 7 bankruptcy case. This would enable our client to have a fresh start from all the burdensome credit card debts. Furthermore, the Chapter 7 bankruptcy’s automatic stay protection would be useful to prevent the creditor from moving forward with the lawsuit.

We got to work with the client to properly document her assets and liabilities. While there were not a lot, our client discovered that there was a retirement account about which she had forgotten. We wanted to save this account for our client and as such, carefully reviewed all the documents related to the same. Once comfortable that the account was protected, we worked with the client to get the Chapter 7 bankruptcy filed. Once it was filed, we noticed the creditor that had filed the lawsuit that our client was protected by the automatic stay and all collection activities outside of the bankruptcy must cease. Next, we attended the Meeting of Creditors and ultimately, the Trustee determined that there were no assets to be distributed to creditors. The debtor is set to receive her discharge any day.

This fresh start will be a revitalizing change for our client and her family. They will be able to start their financial lives over again. It will also mean that her extended family may be able to contribute less towards her necessities. We can also not disregard the peace of mind that she may have in being able to answer her phone without fear that the call is from bill collectors.

Contact a Knowledgeable Bankruptcy Attorney in Fort Lauderdale, FL

For more information about bankruptcy, please contact a Florida bankruptcy attorney today.

Loan Lawyers has helped over 7,000 South Florida homeowners and consumers with their debt problems, we have saved over 3,000 homes from foreclosure, eliminated $100 million in mortgage principal and consumer debt, and recovered over 25 million dollars on behalf of our clients due to bank, loan servicer, and debt collector harassment and abuse, negligence, and fraud. Contact us for a free consultation to see how we may be able to help you.