Bankruptcy Information



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Important to Consider First

Before filing for Bankruptcy, consider whether you have any legal claims against anyone. Has anyone hurt you in the last six years? If the answer is yes, and you do not declare this potential lawsuit in your bankruptcy, then you might wave your lawsuit or be hindered from declaring it in the future.

Bankruptcy as Disaster Planning

Just like Florida must plan for hurricanes, businesses and individuals should consider bankruptcy as an outside possibility if problems get beyond their control.

At TBADK we can represent clients who need to file bankruptcy. We can also help you to see how the possibility of bankruptcy fits into your business risk plan.

Complete Services and Our Price

A chapter 7 costs about $1,200. This is for "complete services" and filing fees are included. We do not try to have the cheapest price, though in many cases our "complete services" policy will prove us to be the cheapest price at the end of the bankruptcy.

TBADK offers complete services. This means that if you are required to go to court, TBADK will represent you as included in your fees. (Other law firms might charge you an additional $2,000 or more to represent you in court.)

Chapter 11, Chapter 13, and Chapter 20 bankruptcies will be negotiated according to their complexity. These usually cost more, perhaps significantly more than Chapter 7.

Some Misconceptions about Bankruptcy

  • You cannot declare bankruptcy on Government Taxes.

This is a common idea that is wrong. If one owes income taxes to the government they can be included in a bankruptcy if certain requirements are met.

  • You can declare bankruptcy on all Government Taxes.

One fatal misunderstandings concerns taxes that your business withholds for employees. This money is not the business' but is actually the government's and the business is holding the money in trust for the government. If the business does not pay this withheld money, the principles of the business will be required to pay and might go to jail as well.

The Psychology of Bankruptcy

Practitioners of Bankruptcy find three kinds of people among clients in need of bankruptcy:

1. Those that Keep Trying to no Avail

There is a kind of person that keeps on trying to work their way out of insurmountable debts. Insurmountable debts mean just that, they are impossible to work your way out of. This sort of person, therefore, is in psychological denial.

Such a person might make the mistake of using funds set aside for payroll taxes to keep the business going. Though this might seem a noble effort, this has the effect of stealing from the government and the government will treat this as a theft.

Such optimists end up declaring bankruptcy, but declare bankruptcy too late. As a result they have far fewer resources then they could have had if they filed earlier. Such clients would have been better off if they faced the reality of insurmountable debts earlier than later. Part of the services that TBADK will provide, if needed, is counseling clients to face harsh realities and come through the bankruptcy process with the most amount of resources to start their financial life again.

2. Those who Go on Spending Sprees

Some clients see the harsh realities and embrace them with glee. They figure that because they are going under, they might as well go under big. They then proceed to charge up their credit cards on extravagant purchases.

These clients fail to realize that such spending could cause a bankruptcy judge to deny some, if not all debt relief. In this worst of all situations the person has to wait another seven years before filing bankruptcy but has no debt relief. It could be that false statements about this spending could land the person in jail.

TBADK can  help advice clients against such behavior and recommend a new course of action if they have been engaging in this behavior.

3. Those who have had Experiences beyond their Control

The third category of people are those who have had circumstances beyond their control. Such experiences could be sickness, job loss, and divorce. For these people, life has dealt them burdens that are too great to bear. They will not be able to work their way out of them and they realize it. These people need to understand that bankruptcy is an option and understand when would be the best time to declare bankruptcy so they will have the most assets to restart their financial life.

Bankruptcy Depression

For most if not all people, how they perform in their financial life is a large part of their self image. The prospect of declaring bankruptcy, therefore, can be a very depressing time. TBADK seeks to be sensitive to these negative emotions and emphasizes that bankruptcy is not a mere state law but a right written in the Constitution of the United States. This country was founded with the conviction that people should be given a second, third and even fourth chance. Bankruptcy, therefore, has the major positive element of our society believing in the future success of us all and allowing us to achieve that success through giving us multiple opportunities to start over again.

Bankruptcy and Business Start Ups

Starting a business involves risk. One risks time and one risks money. TBADK can help individuals identify these risks and help understand the likelihood of successes.

Whoever starts a business should be able to recognize whether it will succeed or not. After two weeks, two months, or even two years,  the person should be able to say, "I lost a lot of money but had fun and learned a lot." They should then be able to go on to the next business or employment venture.

  • For example, consider that only one out of twenty business ventures will succeed. If one has six businesses that last one week , ten businesses that last two weeks, three businesses that last two months, and one business that is going strong after two years, that person will be successful in three years even though the person failed in 95% of the ventures.

Three years to success is a better path than slugging alone at a failing business and then declaring bankruptcy (and often getting a divorce) at the end.

TBADK can not only help you declare bankruptcy, but can also help you avoid bankruptcy.