Miami Florida Bankruptcy Blog

Posts Tagged ‘Bankruptcy Gives You A Fresh Start’

Today is the start of a 9 part series of videos that I am going to release on the blog to help people learn about the Bankruptcy process. These videos are from the U.S. Bankruptcy Court website and were produced, I think by the Tampa Bay Bankruptcy Bar Association. (If I am wrong, let me know so I can give credit where credit is due!) These videos provide basic information about the Bankruptcy process and will provide you a good understanding to build on when you consult with an attorney.

The first video: Bankruptcy Basics – Introduction to Bankruptcy

The next video in the series will cover the types of Bankruptcy available to consumers. 

If you are in Miami-Dade County, Florida, feel free to contact me to discuss your specific situation. If you are outside of Miami-Dade County, Florida and want to consult with a Bankruptcy Attorney visit the National Association of Consumer Bankruptcy Attorneys website at http://www.nacba.org to find a Bankruptcy Attorney in your area.

Matthew E. Mazur, Jr. Esq., is the managing shareholder of Matthew Mazur, P.A., a Coral Gables, Florida based law firm that represents clients in Bankrutpcy matters. For more information please visit www.coralgablesbankruptcyattorney.com.

What Keeps You Up At Night? This is a common question asked in advertising by debt settlement companies and bankruptcy attorneys. The answer to this question is different for every person who is dealing with financial difficulties. Some people lose sleep because they cannot bare the thought of not being able to pay their bills. Other people can’t sleep because they can’t stop thinking about the harassing phone calls they are receiving. Still others worry about being sued by their creditors and having their wages garnished. No matter what it is that keeps you up at night it is important to remember that you have options.

The economy has hit everyone in one way or another. The key to successfully dealing with your situation is not to give up hope and to evaluate your situation from a dollar and cents prospective. Imagine yourself as being the CEO of  YOU, INC. Don’t think about your situation in any other way, as if you do emotion will cloud your analysis. It is difficult to keep emotion out of this analysis, but is important that you do your best to limit your emotions.

Thinking of yourself as the CEO of YOU, INC., you are charged with maximizing shareholder profitability and the long term viability of YOU, INC. In order to do your job, you need to know what is going on Financially with YOU, INC. The best way to do this is to collect all of your bills and create a monthly budget and profit and loss sheet. Basically, what you want to do is list your income in one column and your expenses in another column. If you have money left over that is good, if you are breaking even that is not so good and if you have negative numbers that is bad. You need a clear picture of your financial picture if you are going to deal with it effectively.

Once you have a clear picture of your financial situation you need to take action on it. First of all, stop using your credit cards. Remember, if you file for bankruptcy and you used your credit cards within 6 months of filing, there is a possiblity that the credit card companies will seek to have you pay these amounts irregardless of your bankruptcy. Unlike the Federal Government, you and I cannot keep printing money without consequences. Using your credit cards will not help you in the long run.

Don’t liquidate your 401K or IRA accounts. These accounts are protected in bankruptcy in Florida and if you liquidate them you will get penalized by the IRS for the early withdraw. If you are at the point where you are thinking about liquidating your 401K or IRA, it is time to look seriously at your situation and deal with it as a CEO of a struggling company would.

Look at your monthly expenses, are there any cut backs you can do to your monthly expenses to save money? If it is not necessary to your daily living, you don’t need it. The purpose of this exercise is to see what money you are spending each month that you don’t have to. Can you save enough money to make a difference in the time it will take to resolve your debts?

After evaluating your monthly expense, income and possible cutbacks what other options do you have? You can try credit counseling services. These companies (both Profit and Not-For-Profit) will attempt to help you to consolidate your monthly payments and reduce your interest rates. For some people this is all they need to over come their current financial difficulties. For others this option will just prolong the inevitable.

Like Crysler and GM it may be necessary for YOU, INC. to look at the option of bankruptcy. Bankruptcy offers you a way to either completely elimate most of your debts (some taxes and Student Loans may not be dischareable) or structure a payment plan that will allow you to pay back your creditors on terms more adventageous to you. The decision to file Bankruptcy is not an easy decision for anyone to make, however if you look at yourself as a business and your family as your shareholders, the decision becomes easier. You owe it to yourself and your family to explore all options you have to deal with your current financial situation. Doing nothing changes nothing. The longer you wait to deal with your financial situation, i.e. your debts, the longer it will take for you to move forward and rebuild your financial future.

If you are in Miami-Dade County, Florida, feel free to contact me to discuss your specific situation. If you are outside of Miami-Dade County, Florida and want to consult with a Bankruptcy Attorney visit the National Association of Consumer Bankruptcy Attorneys website at http://www.nacba.orgto find a Bankruptcy Attorney in your area.

Matthew E. Mazur, Jr. Esq., is the managing shareholder of Matthew Mazur, P.A., a Coral Gables, Florida based law firm that represents clients in Bankrutpcy matters. For more information please visit www.coralgablesbankruptcyattorney.com.