Home -> Law Blog Directory -> Bankruptcy Blogs -> Arizona Bankruptcy Attorney Blog

Bankruptcy

: Arizona Bankruptcy Attorney Blog

Bankruptcy Options and Non-Bankruptcy Options

By Joseph McDaniel, Esq.

Probably the most common thing I hear is that somebody wants to see me to "discuss their options".

The bankruptcy decision tree is not precise, but there are often few options by the time somebody thinks to discuss their options with a bankruptcy attorney in Phoenix, Arizona.

For instance, if there are already five lawsuits that have progressed into default judgments, there are probably few options except a bankruptcy of some sort. Once a collection lawyer has a piece of paper signed by a Judge, he has the crazy idea that somebody has to pay him money!

And he can be a persistent little devil, with judgment debtor exams, garnishments of wages and entire bank accounts, and judgment liens on houses!

If there's a trustee's sale pending in a month, and there are four large mortgages, three of which will give rise to deficiency lawsuits that'll stick, there are few options.

If there is a trustee's sale pending, with the four large mortgages as above, and the potential debtor currently passes the Means Test (because of the mortgage payments that will be wiped out by the trustee's sale), then the decision tree doesn't branch, and there's urgency, as well.

Sometimes I am frustrated, because I talk to such nice people, and they have such urgent problems, and they are simply overwhelmed.

 So making any sort of decision is hard for them.

But if they don't decide to shake a leg and get their bankruptcy filed, they may have a worse problem down the road!

Ultimately, of course, the decision is entirely that of the potential debtor; but I don't like suffering any more than the Buddha. So I'd rather see people make decisions that reduce, rather than enhance, their suffering.

Still, suffering is a great persuader; so I know that if I talk to somebody today, and he is headed into a storm, he'll be back after he suffers enough.

But I guess one of my next discussions will have a title a little like this: You Don't Need to Suffer! Save Yourself!

Full post as published by Arizona Bankruptcy Attorney Blog on December 10, 2010 (boomark / email).