Bankruptcy*

“Bankruptcy no longer has the stigma it once had. Now, it’s considered wise to get the fresh start you need.”

   Financial difficulties are among the greatest stressors in life. They can lead to depression, health problems, and may cause a breakdown in interpersonal relationships, just when you need them the most. When bankruptcy is the right decision, there is no substitute for it. It is a reset button. You get your life back. The major stressors end. Clients tell me how much better they feel after they have finally made the decision to get a fresh start. I consistently hear how much better they are sleeping. They tell me about their plans for their future. I hear happiness and hope in their voice. They tell me they should have filed sooner. It is such a consistent phenomenon — I warn my clients that they will feel better after they file, and will wish they had filed sooner.

   The decision to file bankruptcy is never an easy one. It is usually brought on by an immediate circumstance — being served with a lawsuit, a filed notice of default or sale against their home, a  wage garnishment or repossession, or pressure from creditors.

   If you are considering bankruptcy, you are making one of most important financial decisions of your life. It should be based on sound legal advice, which you understand, from an experienced attorney who has carefully reviewed your complete financial situation and discussed all options with you. When bankruptcy is the right answer, because only it will achieve your objectives, there is no substitute for experience bankruptcy counsel. There are too many traps. Some may result in dismissal of your case, a bar to future filings, or even criminal charges. With so much at stake, you cannot afford to go it alone.

   The 2011 Official Access to Justice Report of the U.S. Bankruptcy Court for the Central District of California makes this point clearly: 39% of unrepresented Chapter 7 petitioners will not receive a discharge; 99.6% of unrepresented Chapter 13 petitioners will not have their Plan confirmed. Yes. 99.6%. It gets worse. The filing has substantial long-term consequences. It may adversely affect your credit report for 8 years. Future filings may not result in an automatic stay — the greatest benefit of filing.

   The preparation of your bankruptcy petition and schedules is a time consuming, document intensive process even for a “simple” Chapter 7. You will need to assemble these documents before I can prepare a petition for you. Unless an emergency filing in necessary, pre-bankruptcy planning is always advisable. More  about my pre-bankruptcy services and why they are necessary is here.


   *Unlike your communications with petition preparers and other persons who are not attorneys, once I am retained our communications are confidential. Information you provide me is protected by my duty to maintain your confidences and the attorney-client privilege. To prevent bankruptcy fraud, I must confirm your identity prior to filing any documents with the court. Pursuant to 11 U.S.C. Sections 526 & 527, the following disclosure is required: Michael R. Daymude, Esq., is a debt relief agency subject to restrictions and disclosures required by 11 U.S.C Sections 526 & 527. The required disclosures are here.

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