September 19th, 2021
Posted By
Matthew Wegner

I have changed the names to ensure confidentiality, but these are the true stories of three people who were granted relief from their debts through Chapter 7 bankruptcy.

Samantha K

Samantha is a hard worker. When she originally came to me in earlier this year she was working two jobs and barely making ends meet. She had significant student loan debt, about $30,000 worth. She had a few credit cards but they had small balances and she was able to keep up with her payments. Unfortunately, she also had a large loan from Wells Fargo which she was not able to maintain. During our first meeting I was able to help her with her household budget so she could try to get back on track with Wells Fargo.

A few months after that initial consultation Samantha called my office again. She had lost her second job due to the Covid slowdown. Many small businesses suffered during Covid and were forced to make some tough choices. Anyway, at the second meeting she retained my office for a Chapter 7 bankruptcy. She applied her work ethic to getting her documents together and we were able to quickly file her case. Samantha’s case went smoothly. I was able to get her in and out of the bankruptcy process in 114 days. She attended her hearing and her case was completed without objection. Now, Samantha is able to support herself working only one job. She is also in good standing with her student loans and her credit score is improving every day. I can’t wait to see what he future looks like.

The Peabody Family

This is a great example of using bankruptcy as a tool to reach retirement. I wrote about this a few weeks ago. In this case, Mr. Peabody was pushed into retirement a few years before he was prepared. He was experiencing some medical issues that hindered his ability to continue working. His wife was still working but they were hoping to be able to retire together and possibly travel. However, with more than $50,000 in credit card debt it did not look like retirement would be in the cards for them.

I was able to guide them into a Chapter 7 bankruptcy. The bankruptcy eliminated the unsecured debt while allowing them to keep their home, vehicles and retirement account. The bankruptcy case ran 119 days from filing to discharge. Now they can move forward with their retirement. Hopefully they will send me a post card from the road!

The Oscar Family

This case was little different because both Mr. and Mrs. Oscar had already retired. As happens to people as they get older, their medical expenses continued to climb even though they were on a fixed income. Over several years they were forced to let some of their credit cards go into default so they could maintain payments on their home, vehicle and medical providers. By the time I met with them they had over $75,000 in unsecured debt. Most of the debt was delinquent and the Oscar family was experiencing the non-stop harassment from debt collectors. Emotionally they were frazzled to say the least. They had never filed bankruptcy before and really didn’t want to do it now. But they had to also face the fact that they could not just go out and pick up an extra job or shift due to their age and medical issues.

I was able to help them through a Chapter 7 Bankruptcy. They eliminated their unsecured debts while keeping their home and vehicle. Unfortunately, they had already burned up the small amount in their 401k trying to resolve their credit card debt. If they had come to me earlier they could have saved those funds but they were trying to do the right thing, which I understand and commend.

Conclusion

Chapter 7 bankruptcy is a powerful tool that should not be used without really looking at all of your options. In these cases bankruptcy ended up being the best option. Sometimes I meet with people and we can find ways to avoid filing bankruptcy. It just depends on the situation of each individual or family. If you are having financial difficulty I would love to have a chance to help you. You can schedule a free consultation directly on my website (attorneywegner.com) or call my office at 817-361-4479.

Thanks!

Matthew