Many people in Denver, Broomfield, or Boulder may feel that they are taken by surprise when a Chapter 7 or Chapter 13 Bankruptcy seems inevitable. Instead, they should be thankful for this protection, as Congress set it up in the first place to allow you to have a much needed fresh start.
History is replete with examples of relatively affluent people mismanaging their finances and running out of money. How does that happen? There are many reasons. One example is that many people, especially people living in trendy cities like Denver, Cherry Creek, or Highlands Ranch, may try to “keep up with the Jones.” This puts their finances in jeopardy. When they see money coming in regularly, they may fail to see the need to budget correctly as they assume that they will never be able to outspend their earnings. Yet, this is not the case in many situations in Littleton, Castle Rock, or Morrison.
People should consider every expense. Eating out every day may seem cheap and convenient at the time, but people can regularly spend over $25 a day on coffee, lunch out, and happy hour drinks before dinner. If that happens five days a week, the total is over $5,750 annually, a pretty substantial amount.
A Chapter 7 or Chapter 13 Bankruptcy gives you a fresh start with your finances. The law requires all debtors to go through credit counseling during the bankruptcy process and learn new strategies for managing money. This way, when the bankruptcy is finalized and the debt is discharged, a person can make the most of this fresh start. In this way the bankruptcy process equips citizens to have a better life and encourages them to be better contributors to society.
At the Arrington Law Firm, we understand that things happen. Medical bills come up, job loss occurs, and good people are left financially crippled in a bad economy. Before considering a Chapter 7 or Chapter 13 bankruptcy, meet with us for a free consultation and contact Bankruptcy Attorney Barry Arrington at 303-205-7870 for your best, fresh start possible.