It is a common thing for family members to help out other family members with their finances or with larger ticket items, such as a house, a car, large appliances, et cetera. So it is also natural for some of them to inquire as to why you and/or your spouse are in the process of filing for bankruptcy. Sometimes this may seem intrusive or overly protective but most of the time it is simply your loved one showing interest and concern. Explaining bankruptcy to them may help to ease some of the more awkward or uncomfortable conversations that you may have to deal with. It is also important to keep in mind for your own peace of mind that filing for bankruptcy is the proper thing to do and will allow you to move forward. Take the following example.
Say you own small business that relies on you and your intellectual capital and personality alone to generate income. It is no doubt mentally and emotionally challenging to manage just the administrative side of your firm, let alone the necessity to invest your skill and training into the non-administrative side of your firm. After hacking away at it for five years you decide it is best to move on and you get a job elsewhere. You have to unwind your business but find out in the process that you signed a contract for health insurance that lowered your premiums significantly. It is only two years into a five year contract. Should you keep paying on the contract?
Should you be saddled with paying those bills, for employees who no longer even work for you and who will not benefit from the insurance policy? Not many people would argue that bankruptcy is inappropriate to discharge all of the personal guarantees that you signed during your stewardship of your small business. Perhaps you earn your income solely as a result of commissions, such as a car salesperson or real estate agent and you had to take a medical leave and were unable to collect disability. During that time your mortgage and car payment went into default status but now you are back at work and earning good money and want to get current. Bankruptcy can help in all of these situations and more . No doubt, bankruptcy does much good for literally millions of law abiding, financially responsible individuals.
It may also help to explain to your loved ones the basics of bankruptcy. In every bankruptcy case there are at least four different players.
The law firm of Long & Long, P.C. have decades of combined experience in bankruptcy and ensuring that clients rights, property and money is protected from creditors and others. Long & Long, P.C. can be reached at (303) 500-3426 .
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