How To Avoid The Number One Reason For Bankruptcy
(….and yes, it can happen to you despite how well you pay your bills)
Bankruptcy………the destroyer of worlds.
Bankruptcy isn’t all that many people think it is cracked up to be.
Not long ago, anyone could file a Chapter 7 and completely wipe out ALL of their debt, wipe the slate clean and start over. Managed properly, someone could enter a Chapter 7 bankruptcy with perfect credit, eliminate the debt and upon discharge, still have a credit score in the high 600s or even low 700s with the only negative impact being the public record created by the Chapter 7 bankruptcy.
Changes in the laws brought on by the corrupt banks and credit card lenders several years ago make it virtually impossible for a W-2 employee to file a Chapter 7 bankruptcy, wipe the slate clean and start over. Bankruptcy judges and trustees along with crooked bankruptcy attorneys routinely push people into Chapter 13 Wage Earner Repayment Plans where they get to have their credit destroyed for the next 10 years while repaying the restructured debt over 60 months (and attorney’s fees and court costs) while enduring the degradation of having the court involved in their every financial decision until the plan is paid off.
Doesn’t sound all that great, does it?
The agonizing reality is that most people simply don’t need to file bankruptcy and really won’t benefit from it. Unfortunately, they don’t know the law and they don’t know what they don’t know. So, like lemmings being guided over the cliff, they listen to incompetent and corrupt bankruptcy attorneys who promise a panacea of all of their bad credit woes and an end to litigation and collection harassment.
Painfully, not a week goes by that I don’t speak to someone who is considering filing bankruptcy. More often than not, they are dealing with a low priced bankruptcy factory designed to crank through as many bankruptcy filings as possible all guided by a corrupt attorney posing as a pompous and arrogant expert because he or she has a J.D. or “esquire” behind their name. (J.D. for those of you who don’t know stands for Juris Doctor and it is the degree that attorneys get for graduating from law school).
Don’t be fooled by this or lulled into some false sense of security because you “have a lawyer”. Bankruptcy attorneys are there for one reason and one reason only and that is to generate cash from you for filing bankruptcy documents that you can file yourself, that in 99% of cases I have seen over several decades, you simply don’t need to file.
While you will rarely hear this in the mainstream media, most attorneys are functionally incompetent and bankruptcy attorneys are some of the worst. They generally are the bottom of the barrel reprobates who couldn’t cut it in any worthwhile practice so they are relegated to preying on desperate people in need of emotional, psychological and financial relief.
When you think about it, a bankruptcy attorney is kind of an oxymoron. Seriously, would you borrow/spend $100,000+ to pay for college and law school and spend 6 years of your life so that you could enter an area of your field where you could only deal with clients who were broke and couldn’t pay you?
What kind of an idiot does that?
And this is who you want to take your advice from?
Are you really that stupid?
Here comes a painful dose of reality. Virtually (if not 100% of) everything on your credit report that would cause you to mistakenly file bankruptcy can be legally eliminated BY YOU by simply sending out two letters. As an example, take a look at how one of our clients who was a perfect bankruptcy candidate with 31 derogatory accounts on her credit report, who had countless collection agencies harassing her, LEGALLY eliminated 28 of the 31 derogatory accounts in only 69 days (far less than it takes to get a Chapter 7 discharged) by simply sending TWO LETTERS. She also increased her credit score by 191 points during that time.
How did she do this?
Was it some sage advice from Mr. Ima Crook, J.D., working for the law firm of Dewey, Screwem & Howe?
Of course not.
It came from being a member and following our course.
Her total cost to do this: $74 (for her subscription to our course) plus the cost of mailing the letters to her creditors and collectors.
Why didn’t any of the bankruptcy attorneys that she consulted give her this advice?
Simple: People work their pay plans.
You see, a bankruptcy attorney only makes money one way, by getting you to file bankruptcy.
- They don’t get paid to help you avoid bankruptcy
- They don’t get paid to help you legally eliminate debt without filing bankruptcy
- They don’t get paid to help you increase your credit score
- They don’t get paid to help you repair credit
They get paid to corral and ramrod you into federal court where your every financial move will be scrutinized and you can and will be interrogated by a judge and/or trustee AND your creditors.
Bet you didn’t know that, did you?
That’s right. When you file for bankruptcy, you will get the pleasure of attending a 341 Hearing (named after the section in the U.S. Bankruptcy Code) known as “creditors hearing”. During this hearing, the trustee and your creditors get to aggressively interrogate you like a potential terrorist and treat you as a “hostile” witness. This is an interrogation and they are on a fact finding mission to determine where you lied on your bankruptcy filing and where you’ve hidden your assets. In any other court hearing, you have a right secured under the 5th amendment, to not incriminate yourself or testify against yourself. Somehow, the banks have circumvented that constitutional right and in the creditors meeting, you will be doing nothing other than testifying against yourself. And God forbid you slip up and make a mistake because a mistake means you’ve committed perjury and bankruptcy fraud (something you don’t want to do in federal court).
All of this can likely be avoided by simply understanding what the law actually is and acting on it.
To recap, in 99% of cases,
- YOU SIMPLY DON’T NEED TO FILE BANKRUPTCY.
- Most debt can be legally eliminated by sending two letters
- Chapter 7 guaranteeing that you can legally wipe out everything is a myth unless you are self employed (and can show little to no documented income for the prior 6 months) or W-2′ed (but haven’t worked in the prior 6 months with little to no documented income)
- One letter can permanently end the harassing collection calls
OK, now that we’ve demonstrated the sheer absurdity of most bankruptcy filings, let’s get to the number one cause of bankruptcy filings.
According to the U.S. National Library of Medicine National Institutes of Health, medical bills or medical bankruptcy is the number one cause of bankruptcy filings in the United States.
In their study, they cite that:
- 62.1% of ALL bankruptcies were medical
- 92% of these medical debtors had medical debts over $5000, or 10% of pretax family income
- The other 8% met criteria for medical bankruptcy because they had lost significant income due to illness or mortgaged a home to pay medical bills
And here are the two MOST SHOCKING statistics they cite stating that MOST MEDICAL DEBTORS:
- Were WELL EDUCATED
- OWNED HOMES
- Had MIDDLE CLASS OCCUPATIONS
- 75% of them HAD MEDICAL INSURANCE!!!!!!!!!!!!!!!!!
So, you think you’re smart, have a great job and are protected by medical insurance and immune from bankruptcy?
Statistics prove otherwise.
The problem is that these statistics also prove one thing:
The bankruptcy filers were NOT educated to the actual laws of debt collection and credit under the Fair Debt Collection Practices Act, Fair Credit Reporting Act or Fair and Accurate Credit Transactions Act or how to legally eliminate the debts without a bankruptcy filing.
Don’t let this be you!
Educate yourself and avoid a bankruptcy filing at all cost.
Now, thanks to the corruption in our federal government, I am forced to advise you that I am not a bankruptcy attorney and you should always consult with a
crooked licensed to steal and commit fraud attorney when considering any legal matter.
Now, there are times when filing a bankruptcy can and does make sense (though these generally involve MASSIVE litigation that would equate to judgments equaling 3 to 10 times or more of your annual income).