"It's a shame you can't file bankruptcy because you aren't behind on any payments." ... Who says these things?

This will be a quick post. I had a potential client call me today to discuss filing bankruptcy. We spoke about whether he should or shouldn't and if he did, what chapter ... 7 ... or 13. After about 50 minutes on the telephone, we were about ready to wrap up and give him time to think about his options and he said, "I have one more issue ... I am current on all my bills."

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I asked, "why is that an issue?" He explained he had an Employees Assistance Plan as a benefit at work and one of the services is financial counseling. He went to a financial counseling session and when he asked about bankruptcy, the counselor said something like, "it's shame you can't file bankruptcy because you aren't behind on any payments. You must be in default to file bankruptcy."

This is not true. Bankruptcy attorneys prefer people to come in before finances get so bad that debtors fall behind on bills and start "wasting" or liquidating their assets. If a person is thinking about bankruptcy, the best place to get answers about bankruptcy is to talk to a bankruptcy attorney.

If you want assistance, legal representation, or just want to know more about Mark M. Medvesky or Wells, Hoffman, Holloway & Medvesky LLP, check out our website at www.whhmlaw.com.

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