We’ve used a different name to protect her anonymity, but let’s call her Julie. Julie is a single woman who lives in Duluth, MN. She is highly successful and earns quite a bit of money. But like many of us, Julie suffers with short bouts of depression from time to time. When she goes through these bouts of depression her credit card use can get out of control. She gambles and buys things she often does not even need. In the end, her credit card debt simply got too high for her to manage by herself. That is when Julie called Kain & Scott, P.A.
At her income level, Julie knew that Chapter 7 Bankruptcy (where you don’t make payments back to your creditors) was not going to be an option for her. She was, however, able to file a Chapter 13 Bankruptcy, which is a government sponsored debt consolidation program. In this program, Julie was required to commit 5 years’ worth of her disposable income for the benefit of her creditors. Whatever debt that did not get paid off during the 60 months, was wiped out, tax free, forever.
Hypothetically, if Julie has 100k in debt, and paid $500.00 per month for 60 months, for a total of $30,000.00, the balance of her debt, $70,000.00 would get wiped out, tax free, forever. Now that sound like a good deal, right? This is exactly why no one should do traditional debt consolidation, which can cause your credit score to drop. Plus, who among us really wants to call a company on the radio or tv who makes it sound promising, but reality is often much less attractive?
CALL NOW FOR A FREE STRATEGY SESSION FROM A MN BANKRUPTCY LAWYER AT KAIN & SCOTT
When the time is right and when you are ready to get your life back, reach out to Duluth, Minnesota’s bankruptcy law firm at www.kainscott.com. You will be so glad you did!
