Kentucky Bankruptcy Law

Counsel with Care

Don’t wait for “financial Armageddon”

The Supreme Court of the United States (SCOTUS) recently released their decision in Lanning which I commented on here. One of the quotes from that decision written by Justice Alito really stuck with me. Alito quoted L. Lundin & W. Brown, Chapter 13 Bankruptcy §3.1[2] (4th ed. rev.2009) as saying:

    “Potential Chapter 13 debtors typically find a lawyer’s office when they are one step from financial Armageddon: There is a foreclosure sale of the debtor’s home the next day; the debtor’s only car was mysteriously repossessed in the dark of lastnight; a garnishment has reduced the debtor’s take-home pay below the ordinary requirementsof food and rent. Instantaneous relief is ex-pected, if not necessary.”

This quote too often true and yet I want to encourage people to not let it be how you approach financial freedom. Some people wait until it is too late because of the shame over their finances being in shambles while others remain in denial about how bad things are until the last minute. I suppose some people expect to be ushered straight into bankruptcy if they see a lawyer. The truth is, though, by the time you cannot pay all your bills (that is what insolvent means), then it is high time to get professional help.

I cannot speak for all attorneys, but I like to meet with people early on to see if there is some other approach they can take other than bankruptcy. I like to lay out various scenarios and give them some sound information to base their decisions on. So, even if they do not file bankruptcy, they can make good choices about the resources at their disposal to come out of financial dire straits in the best possible shape. Don’t wait for financial Armageddon!

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June 13, 2010 - Posted by | Bankruptcy | , , , ,

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