I recently had a client who really did not want to file a case in Bankruptcy. Who could blame her? It is not something to be undertaken lightly. She felt like a “loser” and was very disappointed in herself. But, over a period of years, prior to our meeting, she made many decisions in her financial life that lead her to this place. When she had the opportunity to peel away the sad feelings, she realized that her current financial position was unsustainable and that debt relief was her only realistic option. Ultimately, when she came to understand that what a “fresh start” would mean to her, she felt much better and decided to file her case. A person is insolvent when they can not pay their debts as they come due. So long as those debts were incurred in good faith, they are generally discharged in Bankruptcy. Notable exceptions: 1) child support and alimony, 2) taxes less than three years old and 3) student loans.
When you find yourself in this positon, it is always best to seek legal advise early. You may call me at 732-228-7400.