Mike Davis and Associates PC.

Call Now To Fight Back And Win!

(312) 759-1900

Mike Davis and Associates PC.

Bankruptcy is not always the easy, quick solution that advertising makes it seem to be. What kinds of things does the advertising usually skip over? Debt counseling. Before you can file for bankruptcy, you must complete a debt counseling course. Then, before your bankruptcy case is closed, you must take another counseling course. Both will cost you time and money. The means test. This measures your income compared to the rest of the population in your state. If you are below average income, then you can probably get a Chapter 7 discharge and “start over,” but only after you’ve given up all your assets. If your income is average or above, however, you are not allowed to get a Chapter 7 discharge– you can only file a Chapter 13 bankruptcy. Loss of control of your affairs. In a Chapter 13 case, a trustee reviews your finances and debts and then imposes a payment plan whereby you fork over money to the trustee and the trustee pays your creditors. You lose control over your finances in exchange for a discount on your debts. And who pays the trustee to do all this work? You do!

If you get a raise or come into an inheritance, or your spouse gets a new job, your creditors can go back to the trustee and ask to redo your Chapter 13 plan so that they can take more of your money. In many cases, it’s simply an illusion that you’re going to be able to wipe debt away and not have to be responsible for it. Finally, seeing a bankruptcy case through, from petition to discharge, can be a lot more expensive than the advertisements make it seem. Bankruptcy may be right for some people, but I don’t practice bankruptcy law- I’m a better and less expensive alternative for many people being sued by debt buyers.

What Factors Do You Consider When Taking On A Debt Buyer Case?

The number one thing I look for is a client who wants to fight back. Second, the dollar value of the case (amount you’re being sued for) matters; it’s usually not cost-effective for the client (or me!) to handle a case worth less than $5,000.00. The dollar value of the case is also is a big factor in determining my fee. In Illinois, cases under $10,000.00 are “small claims” and handled differently than cases greater than that amount. Other factors considered in determining my fee are geography (travel time to and from various courthouses), communication with the client (whether the client knows how to use email or needs a translator), and the client’s collectability (whether the debt buyer thinks it has a good chance of collecting).

For more information on Why Bankruptcy Is Often a Bad Idea for Debt Buyer Cases, a free telephone consultation is your next best step. Get the information and legal answers you are seeking by calling (312) 759-1900 today.

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Call Now To Fight Back And Win!
(312) 759-1900