CASE RESULT

Two family members own their own homes and are 50/50 owners of a business.  They have been hanging on during these difficult economic times and now have not been paid on a major job that they performed for a customer.  It does not look like they are ever going to be paid and that it will take more than ten years to climb out of the economic hole, if ever.  Through bankruptcy they have been able to retain their own individual homes, retain their cars and get a fresh start on life after establishing a new business or obtaining new jobs.

CASE RESULT

 A southern New Hampshire couple with teenage children both had very good-paying jobs.  Mother’s employer was downsized, and her work was reduced to 30 hours per week.  Dad lost his good-paying job although he was able to obtain a much smaller job.  As a result of the two lower incomes, the family was getting further and further behind in their first and second mortgage payments, boat payments, car and truck payments and their usual credit card obligations.  After trying to hold on for two years, they saw their economic hole getting deeper and deeper.  They both were able to get a fresh start on life and rebuild their credit, while keeping their family together.  They were able to successfully discharge thousands of dollars in credit card and similar debt obligations.  They lost their expensive boat and fancy truck.  Both of those assets had no equity after the debts.  They were able to keep their personal cars, their household furniture and appliances, their 401(k) plans and their personal sporting equipment.  They could have kept their house but decided to move out since their house was worth much less than the first and second mortgages. (They could have filed Bankruptcy pleadings to keep their house but they decided against it to lower their living expenses.)  THEY GOT A FRESH START WITH NO MORE DEBT.  Interestingly, after they filed bankruptcy, they were contacted by several credit card companies, since they actually were a better credit risk now that they were discharged from their creditor obligations.

CASE RESULT

A former southern New Hampshire small contractor was financially holding on in this difficult economy.  He had work, reliable employees and subcontractors and a good reputation.  When a long-time valuable client got into financial difficulties and failed to make a major payment owed to the contractor, all of the contractor’s bills got backed up.  His equipment loan was with the same bank as his business operating account.  Without advanced notice, the bank “swept” overdue equipment loan payments from the operating account, causing several outstanding operating checks to bounce.  It was ugly.

After the contractor tried to recoup the losses, and his customer who owed him a significant debt decided to go out of business, the contractor faced the possibility of trying to work out of this economic hole for the next five to ten year or get a fresh start for himself and his family through the protection of the Bankruptcy Code.  This contractor felt that he never would have to face bankruptcy.  He ran a good business and made good spending choices.  The financial hole was simply too deep.  Bankruptcy allowed him to get a fresh start and relieved him from significant unsecured debt, including personal obligations.

The client was embarrassed to talk about the possibility of bankruptcy.  After sizing up all of his economic options and evaluating his need to get back on his feet to support his family, including future college educational classes for his children, bankruptcy ended up providing a great relief.