People often come into our law office to discuss bankruptcy matters. Some individuals are concerned that an arrest warrant may have been issued because they haven’t paid their debts.
They may have received threatening phone calls from debt collectors. The calls are disturbing and frightening for the debtor. The debt collector may have threatened the individual that they may be immediately arrested for non-payment of a debt. Rest assured that this is simply untrue.
Already struggling with home foreclosures, harsh bank and credit card fees, and other major financial challenges, America’s most deeply indebted consumers are now falling victim to a major new threat: so-called “debt settlement” schemes that promise to make clients “debt free” in a relatively short period of time. Unfortunately, most consumers who pursue debt settlement services find themselves facing not relief but even steeper financial losses.
Already struggling with home foreclosures, harsh bank, and credit card fees, and other major financial challenges, America’s most deeply indebted consumers are now falling victim to a major new threat: so-called “debt settlement” schemes that promise to make clients “debt free” in a relatively short period of time. Unfortunately, most consumers who pursue debt settlement services find themselves facing not relief but even steeper financial losses.
Even the industry acknowledges – though not in its ever-present radio and online advertising–that debt settlement schemes fail to work for about two thirds of clients. Federal and state officials put the debt-settlement success rate even lower – at about one in 10 cases – meaning that the vast majority of unwary and uninformed consumers end up with more red ink, not the promised debt-free outcome.
You may have heard that our current economy is being classified as a “middle class recession.” This phrase was coined because statistics show that bankruptcies filed by individuals who make more than $60k per year increased significantly beginning in 2008 when the economic recession began.
Statistics show that since 2008 bankruptcies have increased among higher wage earners and professionals. Especially impacted are people in the real estate profession; namely contractors, developers and agents. Following down the line are developers, builders and the many related tradesmen. Few people have been left unaffected.
There has never been a more critical time of having a vehicle at your disposal than during the current economic downturn and rising unemployment in the Milwaukee area. Whether used for the purpose of commuting to work, job interviews, or other basic fiscal needs, it is necessary to have reliable personal transportation. This shouldn’t be an unreasonable goal, even if you’re considering filing for bankruptcy.
When you’ve experienced the bite of the poor economy in Wisconsin and you’re on the road to filing for bankruptcy in Milwaukee, the same economic issues that demand having your own personal vehicle could also mean you’ve already fallen behind on car payments and your precious vehicle is a prime target for repossession by creditors. Maybe your car was recently repossessed prior to filing for bankruptcy and you’re wondering if bankruptcy can help? Can the “automatic stay” which legally suspends a creditor’s ability to repossess most assets still be of value despite the fact that your vehicle has already been repossessed?