At Kain & Scott, “We don’t judge you, we HELP you get your life back!” If you jump off the fence and choose bankruptcy to solve an overwhelming debt problem, you get your life back sooner!
Think about it, so many good Minnesotans choose some arduous debt consolidation plan and make their family suffer for years on end. If you think you struggle to pay your bills now, let your creditors dictate the repayment terms or they will garnish your wages and you will quickly see who eats first and who eats second.
When our guests chose to file bankruptcy, jump off that fence, they are quickly jumping into a fresh start again. The debt worries go away and you can pay your bills on time again. The roof over your head is secure and there are groceries in the fridge.
Pushing the reset button and starting fresh allows you to do what you always wanted to do- stay current on your bills and protect your family.
Yes, this is true. I know this seems like a joke of some kind- to say you can file bankruptcy and improve your credit score but think about it. Do you think your credit score is better if you advertise to the world you are in financial distress and are in a plan or do you think your score is better if you have NO debt!?
Future creditors don’t give two rats’ butts about you paying your current creditors. What future creditors want to know is are you going to pay me. If you have little or no debt, chances are you will pay your future creditors. Now let’s be clear, bankruptcy is on your credit report for 10 years. However, most people’s credit scores increase after filing bankruptcy and obtaining a discharge.
This is true because you have little or no debt on the report. So when future creditors look at you, and decide whether to give you a loan, they are more confident in repayment after a bankruptcy discharge than before your discharge when you had piles of debt.
Makes sense right? We think so.
One of the little known advantages of filing bankruptcy is the debt gets cleared with no tax consequences to you! There is an exclusion under the IRS code as to what defines income. Debt’s forgiven in a title 11 bankruptcy (which both chapter 7 and chapter 13 bankruptcy fall under) are not taxable income to you.
That is a huge benefit since any debt forgiven outside a bankruptcy is taxable to you. Paying the tax is better than paying the whole bill but you still wind up with another debt when you are already suffering- it just seems cruel to us.
Getting rid of debt, tax free, is another reason why filing bankruptcy really is about getting your life back and pushing that reset button.
For most Minnesotans we deal with, debt was the result of some catastrophe. It might be a job loss, a divorce, a medical problem, a bad decision, a business gone south- whatever! When we meet with our guests, we often here them say when this happened than this happened etc. There is usually always a trigger that made the debt flow like water.
The problem with this is it causes you to relive the tragedy over and over again. Have you ever been in a bad relationship where you said to yourself, I cannot have this same conversation again? Or have you ever been part of a lawsuit? If you have you know that litigation causes you to live in the past. That is not healthy.
I have said it so many times before, I don’t mind problems, but I don’t like a lack of solutions to those problems. We humans think that we need to suffer a lot before we get help for a problem. That is bullshit. If you are stressing about overwhelming debt, you have already suffered long enough.
Most people we meet with have suffered with debt for a long time. When they meet with us, they are so sick of the emotional battery caused by thinking about overwhelming debt, they are ready to move on and get their lives back. You can too!