The typical Chapter 7 bankruptcy

Elaine was a hard-working and resourceful person who struggled to keep pace with financial obligations. She worked two jobs, sometimes three during the holidays, and always paid her rent and car payments on time. But then some unexpected expenses put her in a tight spot.

First, her older model car needed some major repair work to pass inspection. Then, Elaine went to the eye doctor only to find her prescription changed dramatically and she would need stronger glasses. A tooth broke, requiring expensive dental work. Since she had no dental or vision insurance, Elaine had no choice but to use her credit cards to stay afloat.

Rising interest and monthly payments

It didn’t take long for rising interest rates and minimum monthly payments on the credit cards to become overwhelming. Elaine’s telephone began to ring constantly with creditors demanding payment. Elaine had managed, out of necessity, to charge more than she could afford to pay.

Elaine had several options. She could try to work with her creditors and work out a repayment arrangement, but she had already attempted that with no success. Her second alternative was to seek help from a consumer credit counseling company service, but the payments weren’t saving her enough money to get by.

Elaine didn’t know who she could trust. She had heard and read about others who had sent thousands of dollars to some of these companies but were disappointed with the results. She was so overextended that just making the minimum payments strained her budget to the breaking point.

Pittsburgh bankruptcy attorney

Elaine heard from a friend that Steidl and Steinberg offered a free consultation. She met with one of the attorneys who prepared an assessment of her income and expenses. It became obvious that there was no money remaining at the end of the month to make a payment to the court for a Chapter 13 Plan. Thus, a Chapter 7, or straight bankruptcy, became her only alternative.

The purpose of Chapter 7, as is true with all bankruptcies, is to give honest debtors a fresh start. By filing a Chapter 7, Elaine would be allowed to retain possession of her car as long as she continued to make the payments. In fact, Elaine would be able to keep everything she owned. She would continue paying her rent and utilities, but the unsecured debts, such as the charge cards and personal loans, would be wiped out.

Chapter 7 bankruptcy

There really was only one option for Elaine. Steidl and Steinberg recommended the Chapter 7 bankruptcy. She was pleasantly surprised to find the process much easier than she would have thought, and she wonders now why it took her so long to make her initial decision to call Steidl and Steinberg.

Elaine was concerned about her future credit, but the damage had already been done by her missed and late payments. When the bankruptcy was over, she was able to replace her car with a new, modest, car at a payment she could afford.

Ask Steidl and Steinberg about ways to rebuild your credit. And don’t fall for those that tell you they have secret ways to make your credit better. There are no secret ways.