Bankruptcy: A Financial Planning Tool

Bankruptcy: A Financial Planning Tool

Bankruptcy lawyers are too often just that...lawyers that practice Bankruptcy and only Bankruptcy. A one-size fits all approach that leaves the Client feeling frustrated and stressed. The truth is, Bankruptcy is NOT the solution for every financial problem or debt crises a Client faces. Instead, just like a scalpel or a socket wrench, Bankruptcy is a powerful and useful tool, which when used by a skilled attorney can provide a Client with a Fresh Start free from creditor harassment. As an example, the Chapter 13 Bankruptcy claims process can be extremely helpful in determining how much of a Client's tax debt is able to be discharged, how much is actually not subject to discharge and how much is considered secured or priority debt. This information is incredibly important in assisting the Client to formulate a Financial Strategy to address his or her tax liability. Chapter 7 bankruptcy can be used to redeem or buy-back an automobile for its true fair market value, rather than paying the bloated loan balance that may have been infected by a prior bad car deal. These outcomes use Bankruptcy as a tool--not as the objective! Individuals less than 10 years from retirement and considering a debt consolidation program that will last 3 to 5 years and consume the vast majority of their monthly disposable income--money that could have been better placed into a 401(k) or other retirement fund--might be better served with a Chapter 7 Bankruptcy that discharges the debt with NO repayment plan. Increasing one's investment in retirement for 10 years, rather than funding credit card companies through a debt consolidation sentence, is a Financial Planning tool. For couples struggling with high interest rate credit cards and high interest rate car loans, viewing Bankruptcy as a Financial Planning tool can be critical in stopping the "blame game", allowing the couple to work together to plan a sound financial future. And I could go on. At Roc Law, we are proud to be attorneys and counselors for our Clients throughout the St. Louis metropolitan area. Roc Law is a law firm that utilizes bankruptcy as a tool--where appropriate--but it is our job, no, our mission, to counsel Clients and provide them with all the tools and information needed to BEST plan a Solid Financial Future!