He wanted to file for bankruptcy because his pending divorce made it impossible to pay the mortgage, the credit cards, the lawyers and his living expenses.
I figured out that he made too much to qualify for chapter 7 bankruptcy, but a chapter 13 payment plan would be a great solution.
I was able to structure a plan to catch up on the mortgage payments over 5 years with no interest. We then added all the credit cards, as well as the credit union loan and credit card payments which had been automatically deducted from his pay.
His monthly payment to the Bankruptcy Trustee will be about the same as the amount he has been paying only for the credit union’s monthly deductions. And that same monthly amount now will include the credit cards and the mortgage arrears.
Each case, of course, is unique and must be structured according to the client’s individual needs and abilities. Also, it is important to structure a plan to avoid hidden risks which we try to anticipate through our in-depth interview process.