October 26th, 2021
Posted By
Matthew Wegner

This week we received discharges in 6 different cases. With just these Chapter 7 bankruptcy discharge orders we eliminated about $615,000 in unsecured debt. That means credit card debt, payday loan debt, debt from old repossessions and old medical debt. In this group we also were able to discharge about $14000 in IRS debt. I am excited I was able to help these people and I hope that I can help you. Here are their bankruptcy stories. The names have been changed but the facts are true.

Mr. Mountain

This client came to my office in debt following a divorce. He was also unemployed for a short period of time due the economic affects of the Covid-19 pandemic. He was able to return to work and bring his rent and vehicle current. His other creditors would not work with him and eventually filed suit to collect the past due balance. Since early August more creditors have been filing debt collection lawsuits.

After meeting with him to discuss his options, the client decided to proceed with a Chapter 7 bankruptcy. We were able to eliminate over $20,000 in high interest debt. The case ran 124 days. Now Mr. Mountain can focus on the things that are more important to him like spending time with his kids and building his professional life.

Mr. and Mrs. Wilde

These clients met with me by video conference. We were able to complete their entire process online. These clients filed bankruptcy because they had a significant decrease in income. Mr. Wilde had been working in the oil fields of West Texas for several years. After the downturn in oil prices his job shut down. While there were promises of future work, nothing ever came. Mrs. Wilde tried to pick up the slack but they could only stay current for so long.

When they reached out for help for they owed more than $84,000 in high interest unsecured debt. They knew that their mortgage loan payment deferment would be ending soon and that they needed to act. Bankruptcy filing to my client’s discharge took 91 days. Once the discharge was entered the clients were free from the $84,000 of debt. They have a much better chance of being approved for a loan modification or refinance.

Mrs. Quail

Mrs. Quail reached out to me through her sister after Mrs. Quail’s husband passed away. He had been sick for quite some time. Mr. and Mrs. Quail incurred credit card debt while trying to stay current with his medical bills. Mrs. Quail was still working but missed time while helping her husband. Once Mr. Quail passed away not only was Mrs. Quail still responsible for the debts, but Social Security also actually reduced their retirement benefit to her due to Mr. Quail’s death. This client also owed about $14,000 in IRS taxes from 3 years ago. She had been paying them $200 per month with interest to try and resolve the amount owed.

I met with Mrs. Quail and her sister, and we decided to move forward with a Chapter 7 bankruptcy. Through the bankruptcy we eliminated $95,000 in unsecured debt. In this case, since she filed her taxes on time and they had been filed with the IRS for more than two years, we were also able to secure an agreement from the IRS to discharge her tax liability. This case was very successful for the client who can now move forward in her life with the crushing financial burden imposed upon her by the Debt collectors and IRS.

Mr. and Mrs. Henry

Mr. and Mrs. Henry filed bankruptcy and discharged about $145,000 of debt. In this case Mrs. Henry had been earning a significant wage providing home healthcare services. She had a specific set of clients that she would visit each week or day to help them with their medical needs. As Covid-19 took its toll on many elderly Americans, Mrs. Henry’s client base decreased. Ultimately, she lost 3 clients to Covid related illness and one past away to an injury. As Mrs. Henry lost clients, she lost income. Finally she reached a point at which she and her husband could not continue to make payments on their debt.

I met with them and within 97 days we eliminated their dischargeable unsecured debt. They kept their home and cars. Now they can move on to better jobs and opportunities.

Mr. More

Mr. More met with me and was unsure if bankruptcy was the best route for him. He only owed about $15,000 in high interest debt. At our intimal meeting I advised him to pursue debt settlement with his creditors. He agreed and I did not expect to hear from him again. However, his creditors turned out to be unreasonable. Instead of working in good faith with him to payoff what he owed, the Creditors filed suit. Once the creditor filed suit Mr. More could not afford to hold off on the bankruptcy filing. By filing Chapter 7 bankruptcy Mr. More was able to stop the lawsuit from continuing. The lawsuit was dismissed as a result of the bankruptcy filing. In 119 days we eliminated his debt, including the debt owed to the creditor who filed suit.

Mr. and Mrs. Goodnews

These clients had a heart for community service but unfortunately their finances fell behind. These clients were blessed with a new child being born into their household. Mrs. Goodnews chose to stay home with their child and Mr. Goodnews took a second job to help generate more income. However even with all the hours he was working, he was not able to replace the decrease in household income. He was missing all the time with his family to just barely make ends meet.

I met with the family, and they decided to move forward with a Chapter 7 bankruptcy. We eliminated a large amount of unsecured debt. In this case the Client had a large student loan that was not dischargeable to so they will continue making payments on it. However, by eliminating the rest of their debt Mr. Goodnews was able to leave his second job and spend time with the family. In a couple of months, they will be able to purchase a new and more reliable vehicle for Mrs. Goodnews.

These are the cases that received discharges this week. You may find yourself in a similar situation. If you think bankruptcy might be the right answer for you, please contact me for a in person, video or phone consultation.