BISANKRUPTCY
THE ANSWER?
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Cover and Interior design by David Christiansen.
Legal Notice
The facts and opinions in this guide regarding bankruptcy and dealing with creditors have been provided for informational purposes only. Nothing should be taken as legal advice for any individual case or situation
Furthermore, reading this book does not establish an attorney-client relationship between the reader and Moran Law Offices. In order to become a client of Moran Law Offices and receive legal advice, it is necessary to sign a written agreement called a retainer which sets for the terms of representation and details the specifics of the attorney-client relationships, including costs and fees.
For further information and/or to make arrangements for a free consultation regarding a specific case or situation, please contact:
Moran Law Offices
25600 Woodward Avenue
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Royal Oak, MI 48067
http://www.michiganbankruptcyfirm.com
1-866-473-1996
BISANKRUPTCY
THE ANSWER?
A 7-step guide to understanding
your options for debt relief
by
Ryan B. Moran,
Moran Law Offices
A Message from the Author
Hello. My name is Ryan B. Moran. I am an attorney and the managing member of Moran Law Offices, a firm that I established in 2007.
When I opened Moran Law, I decided that we would focus on bankruptcy and fair debt collection law.
My goal was to help honest, hardworking people like you who have had their financial well-being turned head-over-feels due to unexpected events.
Unlike many of the firms that ‘dabble’ in bankruptcy, Moran Law handles hundreds of cases each year.
This gives our firm and unmatched level of expertise and familiarity with the evolving nature of bankruptcy law.
As part of my own ongoing professional education, I work tirelessly to stay on top of the latest trends and developments so that I may provide unparalleled service to my clients.
It’s human nature for people in crisis to become so overwhelmed that they go into a state of denial.
This is a mistake with long-reaching negative consequences. So at Moran Law, our goal is to help people address their problems by showing them there is a light at the end of the tunnel.
Unfortunately, ‘the system’ doesn’t make it easy for individuals to get out from under excessive debts.
In fact, it works against people who don’t have a lot of money and resources.
There was a government bailout for people on Wall Street when institutions teetered on the brink of financial ruin while people on Main Street – who are just trying to take care of their families – feel like they have to go it alone.
But you don’t have to go it alone. Moran Law is here for you. We want to be your voice...
your advocate...your solution.
We want to be your partner and your confidante as you navigate through the storm of debt that is drowning you. We’ll fight your battles with your creditors for you and help you get the fresh start you deserve.
That’s precisely why I created this 7-step guide. I hope that it will educate you, enlighten you, and ultimately leave you feeling empowered to move forward and change your life for the better.
The first step is Understanding Bankruptcy Basics. It will give you an easy-to-understand overview of bankruptcy laws today and talk about how and why so many people find themselves in need of financial relief.
I want to ensure that we’re ‘speaking the same language.’ If there is a legal term you’re unfamiliar with, I’ve added a glossary of terms frequently used when talking about bankruptcy topics, which is located at the end of this book...
Very truly yours,
Ryan B. Moran
1
Step One – Understand Your Rights
At Moran Law, we see it every day; people come through our doors feeling like failures or deadbeats for being unable to keep up with financial obligations. But the vast majority of people who file bankruptcy don’t do it because they want to or because they’re trying to abuse the system, or because they’re trying to get something for free.
No, most people who file are good people who had something bad happen to them.
In our work, we see that most people who file for bankruptcy have lost their job and are struggling to put food on the table. Or they’ve experienced a catastrophic set-back such as their house burned down, their loved one got cancer, or they were involved in a bad car accident. And because these are good people whose lives have suddenly gone bad, they want to pay back their debts and do ‘the right thing’ by paying back the credit card companies.
The problem is creditors – Visa and your bank and the mortgage company. They don’t care about doing the right thing. The only thing they care about is getting their money. If they were worried about doing the right thing, they would cut you a break on your debt and interest payments or at least be more understanding.
Shame and guilt keep many citizens from pursuing their right to file for bankruptcy, but here are the facts: you’re not a failure, a deadbeat or ‘the bad guy’ because your financial obligations have gotten away from you. You’re just a normal person trying to get through abnormally bad times who needs a little help to get back on track.
And because of your shame, you may not realize that debt-forgiveness and bankruptcy have a rich and
‘proud’ history in the U.S. Constitution...
“Congress shall have the power... to establish... uniform laws on the subject of bankruptcies throughout the United States.” U.S. Constitution, Article 1, Section 8
Even the Bible talks about the importance of discharging debt...
“At the end of every seven years you must cancel debts...Every creditor shall cancel the loan he has made to his fellow Israelite. He shall not require payment from his fellow Israelite or brother, because the Lord’s time for canceling debts has been proclaimed.” Deuteronomy 15:1-2.
In the United States, bankruptcy is intended to benefit both debtors and creditors by seeing that debtors get relief from debts they can’t pay, and that creditors get paid from whatever assets the debtor does not need to live going forward. In other words, bankruptcy is a little known and rarely used constitutional right that’s designed for people in exactly your kind of situation.
And although bankruptcy can’t solve all of your problems, it can take some of the stress out of your life and get rid of a lot of your financial worries.
2
4 Types of Bankruptcy Proceedings
Bankruptcy is a legal process that was created to give people who are in serious financial troubles a fresh start. It is governed by the federal law found in Title 11 of the United States Code and with the exception of allowed exemptions; the laws governing bankruptcy are the same from state to state.
There are four kinds of bankruptcy proceedings referred to by the chapter of the federal Bankruptcy Code that describes them: