I’m Steve Kramer of the Kramer
Law Firm. I’m a Florida bankruptcy attorney. Let’s talk
about when bankruptcy may be the wrong answer for you. One of the
factors when determining whether bankruptcy is a good option or
a bad option is the amount of assets that you have. A Chapter
7 bankruptcy – which is what most people are looking at – is
a liquidation of your assets and debts. Now you have a certain
amount of assets that are exempt from the bankruptcy, but they’re
relatively small. So if you’ve got significant assets then
bankruptcy may not make sense for you. Also, it depends on
what your assets are in respect to and relation to your debt. If
you got $100,000 in assets and $10 million dollars in debt
bankruptcy might be a very good option. On the other hand, if
you’ve got $100,000 in assets and $10,000 in debt then it
doesn’t make sense to wipe away the $100,000 to get rid of
$10,000 of debt. The next factor you have to figure when filing
for bankruptcy, is the amount of the debt. If there’s not enough
debt to justify the bankruptcy then it doesn’t make sense and
we shouldn’t do it. And this is a relative term. If you’ve got
$100,000 in debt but you’re only making $15,000 a year that is a
mountain to climb. But if you’re got $100,000 of debt and you’re
used to making $300,000 a year bankruptcy might not make sense
because it does leave some collateral damage sometimes.
Third is bankruptcy may not be a good option if there’s nobody
coming after you. If you don’t have creditors calling you, if
you don’t have a lawsuit pending from a creditor, it may be a
little bit preemptive. You may be able to settle that debt into
a structured settlement. You may able to hire a firm to settle
that debt for what could be pennies on the dollar to
something more significant. But in any case it may be viable
alternative to bankruptcy. And lastly, it may not be a good
idea to file bankruptcy here in Florida if you have not lived
here long enough because you’re going to be wasting your time
and money. If you have not lived here long enough to satisfy the
jurisdictional requirements – which basically means that you
are subject to the jurisdiction of the federal courts in Florida
– then bankruptcy is not for you. Or you may not get the
benefits of Florida law in respects to the bankruptcy
because you get a couple of extra exemptions for living
in Florida, which are to your advantage because you can keep
more assets. Why am I telling you this? Because this is
important information for you to consider when you file a
bankruptcy. You can go to plenty of attorneys that will put you
into bankruptcy if you ask for it. But if you come to us we’re
going to make sure it’s the best option for you before we get you
into bankruptcy. We want to make sure it’s going to work for you
and get you the best result. And if there’s another option we’re
at least going to discuss it. If you have any questions, call me
at the number below. I would love to talk with you and help
you out in any way I can. Also, if you’re watching this video on
Youtube or on Facebook, click the “Like” button below, that
way your friends and family can share in the information that
I’m giving you right now. I’m Steve Kramer of the Kramer Law
Firm. Thanks for watching!