Bankruptcy Success Stories
When Bankruptcy Works
At the Framingham, Massachusetts, law office of attorney Thomas G. Waldstein, one of the perks of our work is guiding consumers through the bankruptcy process and seeing firsthand the stress relief that comes with escaping an unmanageable debt burden.
Depending on your specific financial circumstances, Chapter 7 or Chapter 13 bankruptcy may provide much-needed relief from impossible debt loads.
Penniless and property-less after bankruptcy? No. A major misconception about bankruptcy petitions is that you will end up broke, without a home and with no options to get credit in the future. When the bankruptcy process is successful, it can be used to save a home from foreclosure and re-establish good credit.
Using Chapter 7 Bankruptcy to Escape a Bad Mortgage
One example of bankruptcy success occurs when clients come to our law office because they are several months behind on their mortgage. Through no fault of their own, they have fallen behind. Perhaps the interest rates were recalculated, or their personal incomes fell, or they incurred high medical expenses. Whatever the reason, they are so far behind - and the value of the home is such - that they are ready to give up the fight to save their home.
Via Chapter 7 bankruptcy, we can help such clients reset their monthly expenses to a manageable level. They choose to walk away from their home and start to prepare for a more realistic financial future. Most of our clients rent apartments or houses, and elimination of their debt allows them to begin to save money to purchase a new home.
How to Stop Home Foreclosure: Using Chapter 13 Bankruptcy
Another example of bankruptcy success is when clients use Chapter 13 to save a home from foreclosure or protect their continued possession of other property. Commonly, a family has a temporary financial setback that puts them behind on their mortgage. They regain the ability to make payments, but they fell far enough behind that their lender initiated foreclosure proceedings.
Using Chapter 13 bankruptcy, the family can consolidate their past-due debt into a manageable and court-supervised repayment plan.
Bankruptcy Success: Have Reasonable Expectations
One of the most important pieces of advice we give to clients is to set realistic expectations for what they can accomplish through bankruptcy. Most families can retain possession of important personal property, like cars. Some families can save their homes from foreclosure. Other families may need to assess whether they are willing to walk away from their house in order to get out from under the debt.
Schedule a Free Bankruptcy Consultation
The best way to learn what options you have - given your unique set of financial circumstances - is to talk to an experienced bankruptcy lawyer.
To make a confidential appointment, call 508-872-6567 or use our online contact form.
We are a debt relief agency. We help people file for relief under the Bankruptcy Code.