Call Now!
Call Us 414-326-9231 608-260-7133 Text Us 414-326-4709
${site.data.firmName}${SEMFirmNameAlt}

An important point when looking at a bankruptcy

The prospect of filing a bankruptcy is often seen from an emotional perspective. We often speak of the feelings of many of our Wisconsin clients of "being overwhelmed by debt" and the stress that can permeate every aspect of their lives. The debt collectors never stop, and the barrage of demand letters and phone calls can make you feel as if you are being squeezed on all sides.

These emotional issues can distract from an important element of a bankruptcy calculation, which is that it is a calculation. While aspects of bankruptcy can feel very emotional, at the end of the day, your bankruptcy should be an economic calculation based on your debt, your income and the prospect for that to change in the future.

Bankruptcy can eliminate much of your debt, either quickly via a Chapter 7 if you have few assets, or during a longer period with a Chapter 13, if you have some assets that you can afford to keep.

A story discussing the purchase of a foreclosed home from a bank describes how a financial institution views this transaction. For a bank, the price of the home is very abstract.

A single home makes up a very small portion of the total assets the bank holds. A bank may foreclose on a property or refuse to negotiate on price after a foreclosure, even when it could obtain better deal, because that negotiation does not fit in a larger strategy.

For the average person, facing a bankruptcy, those assets make up your life. You see your life in your home, your car and all of the other stuff that you own. And with that stuff comes an emotional attachment, a sense of pride or status and all of the other emotions that follow.

These emotions can cloud your economic judgment. However, you need to view the relationship with your creditors as the economic relationship that it is, and determine what makes financial sense for you.

Your bankruptcy attorney can help you separate some of those emotions from the economic reality of the situation, and show how a bankruptcy filing can provide the "fresh start" you need.

Source: foxbusiness.com, "Pros and Cons of Buying a Foreclosed Home," Brendon DeSimone, August 07, 2015

No Comments

Leave a comment
Comment Information
Email Us For A Response

Free Case Evaluation

* indicates required field

Miller & Miller Law, LLC
  • VISA
  • Master Cards
  • Discover
Milwaukee Office map Madison Office map Kenosha Office map

633 W Wisconsin Ave, Suite 500
Milwaukee, WI 53203

Phone: 414-312-6581
Fax: 414-277-1303
Milwaukee Office

2810 Crossroads Drive
Suite 4001
Madison, WI 53718

Phone: 608-260-7133
Madison Office

6123 Green Bay Road
Suite 210
Kenosha, WI 53142

Phone: 262-326-1669
Kenosha Office

Appleton Office
4321 W. College Ave.
Suite 200
Appleton, WI 54914

Phone: 920-280-3838
Appleton Office

Brookfield Office
200 S. Executive Drive
Suite 101
Brookfield, WI 53005

Phone: 262-261-0665
Brookfield Office

Glendale Office
6001 N. Green Bay Avenue
Glendale, WI 53209

Phone: 414-973-8662
Glendale Office

Fax: 414-277-1303 - We also have offices in Appleton, Glendale and Brookfield to better serve you.