5 Good Reasons NOT to file Bankruptcy by GordonBoutwell

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									                This is an excerpt from the




    CONSUMER’S GUIDE TO
       BANKRUPTCY

                 IN THE FULL GUIDE YOU WOULD GET:

        A basic understanding of the 2 main types of consumer bankruptcy,
        valuable insights into evaluating bankruptcy as a debt reduction tool,
          and practical guidance for finding a quality bankruptcy attorney.

                                 Topics covered:

-   An overview of the bankruptcy process.
-   Key bankruptcy terms like: “discharge,” “automatic stay,” and “exemptions.”
-   Chapter 7 bankruptcy: what it is, how it works, and when it is preferred.
-   Chapter 13 bankruptcy: what it is, how it works, and when it is preferred.
-   How bankruptcy can save a home from foreclosure or a car from repossession.
-   5 good reasons to file bankruptcy.
-   5 good reasons not to file bankruptcy.
-   3 alternatives to filing for bankruptcy.
-   5 questions to ask when interviewing a prospective bankruptcy attorney.




          Want a free copy of this guide?
       Just send an email to bkguide@llgtn.com and look for it in your inbox!
             5 GOOD REASONS NOT TO FILE BANKRUPTCY



1. MOST OF YOUR DEBTS ARE NON-                                           	
  Where	
  a	
  large	
  portion	
  of	
  
DISCHARGEABLE, SO BANKRUPTCY
DOES NOT HELP YOU.
                                                                         your	
  debt	
  will	
  not	
  going	
  
	
                                                                       to	
  be	
  discharged,	
  then	
  
Bankruptcy	
  is	
  a	
  great	
  tool	
  to	
                           filing	
  for	
  bankruptcy	
  
eliminate	
  debt,	
  and	
  it	
  can	
  wipe	
  out	
  
most	
  debts,	
  but	
  there	
  are	
  certain	
  
                                                                         may	
  not	
  be	
  your	
  wisest	
  
debts	
  that	
  your	
  bankruptcy	
  cannot	
                          course	
  of	
  action.	
  	
  	
  
eliminate.	
  	
  If	
  a	
  large	
  portion	
  of	
  your	
  
debts	
  is	
  not	
  going	
  to	
  be	
  discharged	
  in	
  
bankruptcy,	
  then	
  you	
  should	
  strongly	
  
consider	
  whether	
  filing	
  bankruptcy	
  
makes	
  sense.	
  	
  	
  
             	
  
For	
  instance,	
  suppose	
  you	
  want	
  to	
  file	
               	
  What	
  does	
  this	
  all	
  mean?	
  	
  You	
  get	
  rid	
  
Chapter	
  7	
  to	
  get	
  rid	
  of	
  some	
  credit	
               of	
  some	
  debt,	
  you	
  still	
  owe	
  on	
  the	
  
card	
  debt	
  but	
  you	
  also	
  owe	
  a	
  lot	
  of	
            nondischargeable	
  debts,	
  and	
  you	
  
student	
  loan	
  debt.	
  	
  In	
  this	
  situation,	
               need	
  a	
  smart	
  repayment	
  plan	
  to	
  
filing	
  for	
  Chapter	
  7	
  bankruptcy	
  will	
                    address	
  those	
  debts.	
  	
  You	
  would	
  have	
  
likely	
  not	
  do	
  a	
  lot	
  for	
  you.	
  	
  Sure,	
  you	
     to	
  do	
  that	
  even	
  if	
  you	
  do	
  not	
  file	
  
got	
  rid	
  of	
  some	
  credit	
  card	
  debt,	
  but	
             bankruptcy,	
  so	
  what	
  do	
  you	
  really	
  
your	
  student	
  loans	
  will	
  most	
  likely	
                     gain	
  by	
  filing?	
  	
  	
  
not	
  be	
  discharged	
  in	
  your	
                                                	
  
bankruptcy.	
  	
  The	
  same	
  is	
  true	
  with	
                   It	
  is	
  important	
  to	
  know	
  which	
  of	
  your	
  
most	
  taxes,	
  child	
  support	
  and	
                              debts	
  will	
  be	
  discharged,	
  and	
  which	
  
alimony,	
  and	
  other	
  nondischargeable	
                           will	
  not,	
  so	
  that	
  you	
  can	
  properly	
  
debts	
  (for	
  more	
  about	
                                         evaluate	
  bankruptcy	
  as	
  a	
  possible	
  
nondischargeable	
  debts,	
  please	
  read	
                           debt	
  elimination	
  tool.	
  	
  	
  
through	
  page	
  6	
  of	
  this	
  guide).	
                          	
  
	
                                                                       	
  
	
                                                                       	
  
          5 GOOD REASONS NOT TO FILE BANKRUPTCY



2. YOU HAVE THE FINANCIAL MEANS  	
                                      Unless	
  you	
  gain	
  
TO GET OUT OF DEBT YOURSELF, AND 	
  
BANKRUPTCY DOES NOTHING                                           	
     something	
  extra	
  by	
  filing	
  
SPECIAL FOR YOU.
                                                                  	
     the	
  bankruptcy,	
  then	
  it	
  
                                                                  	
  
	
  
                                                                  	
  
                                                                         may	
  not	
  be	
  your	
  best	
  
Your	
  situation	
  may	
  not	
  be	
  as	
  dire	
  as	
              option.	
  	
  That	
  something	
  extra	
  for	
  
                                                                  	
  
you	
  think.	
  You	
  may	
  be	
  able	
  to	
  pay	
  
                                                                  	
     you	
  may	
  mean	
  the	
  ability	
  to	
  can	
  catch	
  
them	
  off	
  yourself	
  without	
  filing	
  for	
  
                                                                  	
     up	
  your	
  mortgage	
  payments	
  over	
  
bankruptcy.	
  
                                                                  	
     time,	
  surrender	
  your	
  home	
  without	
  
	
  
                                                                  	
     penalty,	
  or	
  pay	
  off	
  your	
  student	
  loans	
  
Your	
  income	
  and	
  your	
  expenses	
  drive	
  
                                                                  	
     or	
  tax	
  debt	
  in	
  a	
  finite	
  time.	
  	
  	
  
your	
  debt	
  repayment	
  options.	
  	
  If	
  you	
  
                                                                  	
  
make	
  significantly	
  more	
  per	
  month	
  
                                                                  	
     3. YOUR EMPLOYMENT DEPENDS
than	
  you	
  spend,	
  then	
  you	
  should	
  
                                                                  	
     UPON YOUR CREDIT SCORE.
strongly	
  consider	
  setting	
  up	
  debt	
  
                                                          	
      	
  
repayment	
  plans	
  with	
  your	
  individual	
  
                                                                  	
  
                                                          Several	
  professions,	
  especially	
  those	
  
creditors.	
  	
  	
  
                                                                  	
  
                                                          that	
  require	
  major	
  financial	
  
	
  
                                                                  	
  
                                                          responsibilities,	
  place	
  a	
  large	
  value	
  
If	
  you	
  make	
  a	
  lot	
  of	
  money,	
  and	
  you	
  
                                                                  	
  
                                                          upon	
  credit	
  score.	
  	
  
do	
  decide	
  to	
  file	
  a	
  bankruptcy,	
  then	
  
                                                          	
      	
  
you	
  may	
  be	
  required	
  to	
  repay	
  all	
  or	
  a	
  
                                                                  	
  
                                                          Filing	
  for	
  bankruptcy	
  will	
  have	
  a	
  
large	
  part	
  of	
  your	
  debt	
  back	
  to	
  the	
  
                                                                  	
  
                                                          negative	
  impact	
  your	
  credit	
  score.	
  	
  
creditors.	
  	
  In	
  so	
  doing,	
  you	
  have	
  
                                                                  	
  
                                                          But	
  the	
  bankruptcy	
  may	
  only	
  have	
  a	
  
forfeited	
  the	
  ability	
  to	
  try	
  to	
  negotiate	
  
                                                                  	
  
                                                          relatively	
  small	
  impact	
  on	
  your	
  score	
  
the	
  balances	
  on	
  the	
  debts,	
  and	
  you	
  
                                                                  	
  
                                                          because	
  of	
  the	
  history	
  of	
  late	
  
have	
  paid	
  your	
  attorney	
  and	
  your	
  
                                                                  	
  
                                                          payments,	
  large	
  debts,	
  and	
  other	
  
Trustee	
  to	
  oversee	
  your	
  case.	
  
                                                                  	
  
                                                          financial	
  issues	
  that	
  drove	
  you	
  to	
  file	
  
	
  
                                                                  	
  
                                                          for	
  bankruptcy	
  in	
  the	
  first	
  place.	
  	
  	
  	
  
	
  
                                                          	
      	
  
	
  
                                                                  	
  
                                                          Current	
  and	
  future	
  employers	
  cannot	
  
                                                                  	
  
                                                          discriminate	
  against	
  you	
  because	
  you	
  
                                                                  	
  
                                                          filed.	
  
3                                                         	
  
                 Got a question about your situation or something you read in this guide?
                      Feel free to email me at bkguide@llgtn.com, call me at 615-807-1064,
                                      or visit the website at www.llgtn.com.
               5 GOOD REASONS NOT TO FILE BANKRUPTCY


	
  
   4. YOU HAVE ASSETS THAT YOU DO                                        	
     5. EVEN WITH A DISCHARGE, YOU DO
                                                                         	
  
   NOT WANT TO LOSE.                                                            NOT HAVE ENOUGH MONTHLY
                                                                         	
  
   	
                                                                    	
     INCOME TO MEET YOUR MONTHLY
   If	
  you	
  have	
  more	
  equity	
  in	
  your	
  home	
                  EXPENSES.
   or	
  belongings	
  than	
  you	
  can	
  protect	
  by	
    	
  
   law,	
  then	
  you	
  run	
  the	
  risk	
  of	
  losing	
  Bankruptcy	
  is	
  designed	
  to	
  be	
  a	
  
   that	
  asset	
  if	
  you	
  file	
  for	
  Chapter	
  7.	
  	
  
                                                                springboard	
  to	
  a	
  new	
  life.	
  	
  It	
  should	
  
   The	
  Trustee	
  would	
  see	
  if	
  taking	
  the	
      help	
  you	
  not	
  only	
  in	
  the	
  short	
  term,	
  
   asset	
  makes	
  money	
  for	
  your	
                     but	
  the	
  long	
  term	
  as	
  well.	
  	
  Ideally,	
  
   creditors,	
  and	
  if	
  so,	
  then	
  the	
  Trustee	
   without	
  the	
  burden	
  of	
  your	
  debts,	
  you	
  
   will	
  require	
  you	
  to	
  turn	
  it	
  over.	
  	
  	
  
                                                                can	
  save,	
  make	
  your	
  income	
  work	
  for	
  
                	
                                              you,	
  and	
  plan	
  for	
  your	
  future.	
  	
  The	
  
   You	
  have	
  2	
  options	
  in	
  this	
  situation:	
  	
  	
  
                                                                last	
  thing	
  you	
  want	
  to	
  do	
  is	
  to	
  file	
  a	
  
   	
                                                           bankruptcy	
  where	
  you	
  have	
  no	
  hope	
  
   1. File	
  Chapter	
  13	
  bankruptcy,	
  and	
             of	
  a	
  better	
  life	
  upon	
  its	
  completion.	
  	
  
          repay	
  your	
  creditors	
  the	
  value	
  of	
                              	
  
          the	
  asset,	
  which	
  could	
  require	
          As	
  an	
  example,	
  if	
  you	
  have	
  monthly	
  
          you	
  to	
  repay	
  most	
  or	
  all	
  of	
  your	
  
                                                                income	
  of	
  $2,000,	
  but	
  your	
  monthly	
  
          unsecured	
  debt.	
                                  expenses	
  alone	
  are	
  $2,500,	
  then	
  filing	
  
          	
                                                    for	
  bankruptcy	
  does	
  not	
  help	
  you	
  in	
  
   2. Sell	
  the	
  asset	
  yourself	
  and	
                 the	
  long	
  run.	
  	
  Bankruptcy	
  provides	
  
          negotiate	
  with	
  your	
  creditors	
              you	
  some	
  relief	
  by	
  eliminating	
  some	
  
          with	
  the	
  proceeds	
  outside	
  of	
            debt,	
  but	
  you	
  will	
  be	
  right	
  back	
  where	
  
          bankruptcy.	
  	
  	
                                 you	
  started	
  in	
  a	
  matter	
  of	
  months	
  
   	
                                                           because	
  your	
  income	
  is	
  greater	
  than	
  
   	
                                                           your	
  expenses.	
  	
  	
  	
  
   	
                                                           	
  
   	
                                                           If	
  you	
  do	
  not	
  have	
  the	
  means	
  to	
  move	
  
   	
                                                           on	
  with	
  your	
  life	
  after	
  bankruptcy,	
  
                                                                then	
  it	
  may	
  not	
  be	
  the	
  right	
  time	
  to	
  
                                                                file.	
  	
  	
  	
  	
  
                                                                	
  
                                                                	
  
                                                                	
  
4                                                               	
  
                      Got a question about your situation or something you read in this guide?
                           Feel free to email me at bkguide@llgtn.com, call me at 615-807-1064,
                                           or visit the website at www.llgtn.com.
                                                    ABOUT THE AUTHOR



                                                      GORDON BOUTWELL is	
   a	
   bankruptcy	
   and	
   consumer	
  
                                                      protection	
   attorney	
   in	
   Franklin,	
   Tennessee.	
   	
   He	
   has	
  
                                                      practiced	
   law	
   since	
   2006,	
   with	
   most	
   of	
   that	
   time	
  
                                                      dedicated	
   to	
   bankruptcy,	
   personal	
   finance,	
   and	
  
                                                      consumer	
  advocacy.	
  	
  	
  
                                                      	
  
                                                      Over	
  the	
  years	
  he	
  has	
  helped	
  hundreds	
  of	
  individuals,	
  
                                                      couples,	
  and	
  families	
  with	
  their	
  financial	
  problems.	
  	
  He	
  
                                                      believes	
   in	
   treating	
   other	
   people	
   the	
   way	
   he	
   would	
  
                                                      want	
   to	
   be	
   treated	
   in	
   the	
   same	
   situation.	
   	
   He	
   takes	
  the	
  
                                                      time	
  to	
  get	
  to	
  know	
  his	
  clients,	
  and	
  he	
  educates	
  them	
  
                                                      on	
  their	
  options	
  for	
  getting	
  out	
  of	
  debt,	
  helping	
  them	
  to	
  
                                                      understand	
  and	
  evaluate	
  them.	
  	
  	
  	
  	
  
                                                      	
  
                                                      He	
   believes	
   bankruptcy	
   is	
   a	
   worthwhile	
   tool	
   to	
   help	
  
	
                                                    some	
   (but	
   not	
   all)	
   people	
   get	
   out	
   of	
   debt,	
   and,	
   when	
  
                                                      combined	
  with	
  financial	
  education	
  and	
  counseling,	
  can	
  
       Gordon	
  H.	
  Boutwell,	
  Atty	
            be	
  a	
  springboard	
  to	
  financial	
  independence.	
  	
  	
  
       Lodestone	
  Legal	
  Group	
                  	
  
       198	
  E.	
  Main	
  St.,	
  Ste.	
  4	
       In	
   March	
   2011,	
   Gordon	
   and	
   R.	
   Keith	
   Gordon	
   formed	
  
       Franklin,	
  TN	
  37064	
                     the	
   Lodestone	
   Legal	
   Group	
   in	
   Franklin	
   Tennessee,	
  
       615-­‐807-­‐1064	
  
                                                      with	
   the	
   purpose	
   of	
   assisting	
   business	
   and	
   private	
  
       bkguide@llgtn.com	
  
       www.llgtn.com	
                                clients	
  by	
  exploring	
  legal	
  options,	
  navigating	
  the	
  legal	
  
       	
                                             pitfalls,	
   and	
   providing	
   measurable	
   results	
   through	
  
       	
                                             custom	
  solutions	
  and	
  a	
  commitment	
  to	
  the	
  lost	
  art	
  of	
  
       	
                                             personal	
  care	
  and	
  client	
  service.	
  
                                                      	
  
                                                      Lodestone	
   Legal	
   Group	
   practices	
   in	
   the	
   areas	
   of	
  
                                                      bankruptcy,	
  debt	
  negotiation	
  and	
  settlement,	
  financial	
  
                                                      counseling,	
   residential	
   and	
   commercial	
   real	
   estate,	
  
                                                      estate	
   planning	
   (wills	
   and	
  trusts),	
   and	
  small	
   business	
  
                                                      and	
  corporate	
  law.	
  	
  	
  
                                                      	
  
                                                      	
  
                                                      	
  
                                                      	
  	
  	
  	
  	
  	
  
5                         Got a question about your situation or something you read in this guide?
                            Feel free to email me at bkguide@llgtn.com, call me at 615-807-1064,
                                            or visit the website at www.llgtn.com.

								
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