Macomb County Law Firm: Rebuilding Lives
The Law Offices of Jeffrey J. Randa provides real solutions to help people get out of debt and restart their lives. Our law firm has helped thousands of people dealing with overwhelming and unmanageable financial situations. With more than 20 years in practice, Jeffrey J. Randa’s firm has achieved a 100 percent success rate with bankruptcy clients.
Macomb County bankruptcy attorney Jeffrey J. Randa understands that you may be feeling as if you are all alone trying to solve an impossible situation. Our team can assure you that plenty of other people have faced debt problems just as large, if not larger than your own. The reality is that millions of people in the U.S. each year file for personal bankruptcy. Our law firm has developed the case studies below so that you will have a better understanding of how bankruptcy can help people get rid of their debt and rebuild their financial futures.
Bankruptcy Case Studies
Case Study 1: Recent College Grad Files for Bankruptcy to Eliminate Credit Card Debt
A young man around the age of 25 with no dependents lived at home and used his credit cards to pay for some expenses while going to college. After graduation, he moved out of his parent’s home, purchased a car and is now renting an apartment and paying utilities. While this man is employed, he is barely making enough to pay for his everyday living expenses. Additionally, the financial institution that provided his student loans is now calling for loan repayment and he does not have enough income to pay all of his bills. While he is able to continue paying for his rent, car and student loans, he cannot afford to pay his credit card debt. He has also over drafted his bank account. The cycle of being in debt every month is not working for him. If he experiences an unforeseen expense, such as a car repair, it will be even more difficult for him to stay current on his monthly minimum credit card payments.
In this situation, the young man can file for Chapter 7 bankruptcy. Bankruptcy will allow him to keep his car and apartment, while eliminating his credit card debt and over drafted bank account. As time goes on, his income is likely to increase. Filing for bankruptcy will protect his wages from being garnished by a creditor or his income tax return being intercepted. He will also be in a position to rebuild his credit quite quickly after discharge. Any extra money he earns at his employment will be his and he will be free to invest it in an IRA or use it to pay down his student loans more quickly.
Case Study 2: Middle-Aged Couple Files Bankruptcy After Job Loss
A middle-aged couple both worked making a good living of approximately $80,000 dollars a year. Unexpectedly, the husband lost his job and now the household income has been cut in half. The couple owns a home that does not have much equity. They also have a car payment that is fairly reasonable and have been using their credit cards to pay for monthly purchases. Prior to the job loss, they were able to pay their credit card bills when they were due. Now, however, with their income cut in half, there is no money left to make payments on their credit cards after paying for their everyday living expenses.
Despite an extensive search, the husband has been unable to find a new job that pays a decent wage. The couple’s credit card debt keeps increasing and they are subsequently sued by the credit card company. With only one income, the couple is no longer able to make their monthly mortgage, car and utilities payments since the creditor has garnished 25 percent of their sole paycheck. In this scenario, filing for Chapter 7 bankruptcy can wipe away the couple’s credit card debt so they will be able to continue to meet their mortgage, car payment and necessary living expenses.
Case Study 3 – Homeowners File Bankruptcy to Eliminate Mortgage Debt
In recent years, many homeowners have taken a substantial hit against the equity in their homes. For many people, when the value of their home dropped severely, their mortgage subsequently went underwater, meaning they now owe more than the house is worth. In some cases, it is unlikely that the property will regain enough equity to be “above water” for many years to come. Rather than continuing to stay in their home, many homeowners have decided to walk away from their property. Even though the home was foreclosed and the property went back to the bank, the homeowners still can be required to repay and/or sued for the balance of the mortgage. When this scenario takes place, the homeowners can qualify for Chapter 7 bankruptcy. Bankruptcy will allow them to eliminate their debt and rebuild their credit within a few years. In the future, once things get better, they should be able to obtain a mortgage.
Contact Us Today
The bankruptcy scenarios discussed above are meant to serve as examples of the typical types of clients who contact our firm. These case studies are not meant to guarantee a specific result or represent any specific clients of our firm. If you are ready to move forward with your life, contact the Law Office of Jeffrey J. Randa today at 586-228-6523. Our Chapter 7 law firm offers free, initial consultations and our experienced bankruptcy team can answer any questions that you may have.