Complete Bankruptcy Information and Services

    At the Solutions Network, We don't preach-- we teach.  We know that bad things happen to good people. Our goal is not to look out for the interests of the credit bureaus or creditors-- It is to provide the best information and service available for solving your  issues.  The decision as to how to use the information is left to you.  NOTE: see bottom of page for answers to commonly asked questions about bankruptcy.

At The All Solutions Network, we do more than prepare your bankruptcy petition.  We help prepare you for Life After Bankruptcy...  We provide a Complete Bankruptcy Package that gives you all of this...

Complete Bankruptcy Document Preparation-- We prepare all schedules, including the Federal Bankruptcy Petition plus, Schedules A, B, C, D, H, J, Statement of Financial Affairs, etc...

Tri-merged credit report-- so you don't miss creditors.  A complete record of all debts you owe, credit cards, car loans, real estate loans, collections, judgments, tax liens, school loans,  including balances, payment amounts, creditors names and their addresses-- Saves you hours in your debt investigation..  Remember, if they are not listed in your Bankruptcy, you still owe the debt!

Do It Your Self Credit Repair Kit-- see credit repair.  By utilizing the techniques that we include in this 90 page book, you will be able to immediately begin to improve your credit rating and credit score, in spite of the bankruptcy.

Bankruptcy Information Packet--Comprehensive, but easy to understand information that shows how to maximize the benefits of your bankruptcy by not only eliminating debts, but by reducing the amount of debt remaining on that car or furniture on which you still owe money but want to keep.  In other words-- keep the car-- but get rid of half the debt.

The Truth is that Bankruptcy has it's Benefits and it's Drawbacks-- but whether it is the right decision for you depends on your particular situation...

 For one family Bankruptcy was the only way to achieve home ownership...

For another family, the failure to file, when truly necessary, almost cost them everything.

To see how and why bankruptcy impacted these families' lives see "Scenarios 1 & 2" Below.

    The huge increase in the number of filings and the resulting shrinking profits of many lenders because of bankruptcies, has resulted in substantial pressure to minimize the distribution of information showing that  Bankruptcy is not, generally, especially complicated, (The average consumer absolutely does not need an attorney) or that life after bankruptcy is not as difficult as often imagined or portrayed.  Even so, whether or not to file Bankruptcy is one of the most difficult decisions that a person makes in today’s society.  Accurate decisions require accurate information.  The things that cause people to come to a point in their life where Bankruptcy becomes something to even be considered are many varied.  But at this point, we are not going to talk about how we get to that place, but rather, what to do about it-- and to inform you of the true consequences.  We all know that bankruptcy is not a good thing.  It goes on your credit report and stays there for 10 years, and yes, for a year or two, if you apply for a loan, you will pay a higher interest rate.  There's no question, bankruptcy is rarely an ideal solution, but it is often the best solutions--  and as we'll see, it also is not an economic death sentence.

Should You File?

There is no magic formula that tells you whether bankruptcy is the best choice for you-- but here a few facts to consider.

What I am going to do here is not necessarily give you advice but rather elaborate on a couple of scenarios that I have had with my clients while dealing with Bankruptcy, and credit related facts-- also, what I suggested that they do and the end result.  Of course, how you proceed and the decisions you make are yours and yours alone.  My goal is to simply help you proceed with a broader view of what bankruptcy is.  Hopefully, this article will give you more relevant, real life facts to help you make a fully informed decision-- See the following true life stories of past clients.

I had a close personal friend who came to me wanting to buy a home.  During the loan process we found that he had absolutely impeccable credit. Unfortunately, his income was only slightly more than his outgo, (as in about $100 per month, and this is before food and utilities!), .   My first question to him was how are you managing to make all your payments on time.  I had never seen anyone so overloaded with debt while making their payments so flawlessly.  He informed me that he was effectively borrowing from Peter to pay Paul.

    Under these circumstances, there was no way that he could qualify for a normal loan.  He only wanted around an $80,000 home, but even with the $8,000 down he was getting from a settlement, he could not qualify for a conventional low rate loan.  His expenses vs income was just too high.

     Here’s what we did.  We used his $8,000 insurance settlement for his down payment.  I persuaded the seller of the property to carry $12,000 for a term of 30 months.  Now, that we only needed a loan for $60,000 on an $80,000 home, We were able to get him a loan  secured by the property.  It was not a good loan, but a loan, nevertheless.  This loan was fixed at 6%, but for only two years.  After that it would adjust to about 12%, thus increasing my friends payment by about $300 per month over the original payment.  Generally, I wouldn’t negotiate this deal for my worst enemy, but we had a strategy that would insure that he would never have to pay that high interest rate.

    At the end of two years, he had paid his remaining bills perfectly.  Additionally, because he had all of the unsecured debts discharged, his monthly obligations were reduced by about $600 per month.  He now had good credit and income to debt ratios that were reasonable, so he could now refinance his home and get rid of that first mortgage that was getting ready to go to 12%-- plus, because his home had appreciated, we could even pay off the $12,000 that he still owed the seller.  Because his finances were now in balance I was able to get him approved for a refinance to do the above at a fixed 6% interest rate loan.

Amazingly enough-- this was one of those rare situations in which the only way to accomplish the goals of home ownership for himself and his family, was Bankruptcy.

 Doing the right thing is always admirable.  But it has been my experience that sometimes doing the right thing for the creditors is absolutely the wrong thing for your family...    

    I was recently contacted by a family that had been struggling with debt for 3 years.  Prior to the beginning of their problems they had both had very good jobs.  As with most of us, good jobs equal good lifestyle and lots of debt.  Their income was such that they were not overloaded in the least.... but then he lost his job, the family income was halved for about six months.  They had some 30 day lates, but nothing too serious.  He finally found other employment-- just about the time that she lost her job!...  Over the next three years, for both of them, employment was sporadic.  In their attempt to do the “right thing”, keep their home, pay their bills, even if late,  they drained not only their savings, but raided their retirement accounts (Which you can almost always keep when you file Bankruptcy), as well, which of course carried huge early withdrawal penalties, (we managed to avoid most of the penalties on an amended tax return), but the point is that they were financially drowning.  At all costs, they were determined to avoid bankruptcy.  They wanted to do the right thing and pay their creditors.  They continued their spiral and sporadic employment for three years.

What if your income is High?

There are presently no income standards for filing bankruptcy.   The real question asked of those filing Chapter 7 is whether the debtor has sufficient funds after payment of his necessary living expenses to repay his debts.  

 The United States Trustee or the Chapter 7 trustee can seek to have a debtor's case dismissed for "substantial abuse" if the debtor's income is sufficient to repay a significant portion of the scheduled debts.  11 U.S.C. 707(b).   The threat of dismissal is basically a coercive attempt to persuade the debtor to convert there case to a chapter 13, in which they repay all debts and arrearages over a period of 3 to 5 years.  As to how effective or legally binding these attempts are, the actual law on this subject is simply not well developed and the attitudes of trustees and judges about what is "abusive"  varies from district to district.  This concept does not apply to Chapter 7 debtors whose debts are primarily business debts, tax debt, or to those filing Chapter 13.

 The Real Question is-- Do you need to file bankruptcy?

Deciding to file bankruptcy can be a tough decision.  Almost everyone confronting the decision vacillates back and forth.  The constant struggle to pay your debts and "do the right thing"  versus just starting over.  Ultimately it's a question that only  you can answer, but if you feel compelled to do the "right" thing, please....

Can you avoid bankruptcy with outside help?   If you can't pay off your debt within three years on the present terms, contact a Consumer Credit Counselor or a similar organization;  they can help you make a budget and negotiate a repayment plan that may include a reduced or even zero interest rate on your existing debt.  Creditors generally cease collection actions against those participating in CCC plans.  

 Consider bankruptcy:

If these repayment alternatives are not feasible, then consider bankruptcy.  

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