We spend a lot of time talking to our clients to get to know them, and learn more about them, so that we can determine how best to help them. Having helped over 40,000 people become debt free in Minnesota, we’ve learnt that typical bankruptcy clients often have a sad story too.
Whilst bankruptcy cases may be similar, we know that every one is different, and that each person’s circumstances are different too.
It’s extremely rare for us to speak to someone who wants to file for bankruptcy because they have tried to emulate the life of a Hollywood movie star.
These examples below are made up, but are the sort of stories we hear on a daily basis, many of them just as heartbreaking.
Joe works at a factory for 10 hours a day. Despite being promoted to a supervisor and managing a team of 10 workers, he’s just had his hours reduced and there’s no overtime.
There is always rumor and gossip about the factory closing, and Joe lives in fear of losing his job.
With 2 children and a stay at home wife, he is rightly worried about his finances.
They rented and saved for years, but the mortgage they took out for their own family home for their family is now unmanageable. And because of the recession, their home is under water, as the mortgage is worth more than the house, so they can’t sell it.
So after paying the mortgage and the car payment, there is barely any money left for the basics such as groceries and utility bills. This is why they’re using their credit cards more.
Tommy is a Veteran, and has several health conditions. With ongoing medical treatment and bills, as well as being unable to work very often, he’s really struggling.
He can’t do much manual work anymore despite his mechanical skills, as has an old leg injury. His injury also means he can’t sit at a desk and work in a modern desk job.
With his savings almost gone since his divorce, he’s relying on his credit cards just to make it through the month.
After her 10 year relationship broke down, Melissa was left with 2 children and a mortgage.
Her ex-partner’s mother no longer looks after the children, so Melissa now needs to pay for childcare too in order to work.
With a single part-time income, and more outgoings, it’s not surprising that Melissa is struggling to pay her bills, keep a roof over her head and put food on the table.
George needed to take unpaid time off work when his father’s terminal illness got worse. He and his wife had to fly to California and live in a hotel for 2 weeks.
This meant that he had to spend a lot of money he wasn’t expecting, and so couldn’t have budgeted for.
Having to find a lot of money quickly meant they had to put everything on their credit cards.
Their monthly credit card repayments are now unmanageable and costing them almost as much as their rent.
George’s only consolation is that his father recovered enough to leave hospital.
Mark and Helen
Mark and Helen were proud parents when their daughter got a place at a prestigious university in another state.
However, just weeks before graduation, a drunk driver knocked her over as she came out of a convenience store.
As her distraught parents were trying to come to terms with the fact their daughter would be paralyzed for life, their world was turned upside down again. The student loans company wrote to them to say that that Mark and Helen were now liable for their daughter’s student loan.
To make matters even worse, the loan was a private loan from a bank, and needed to be paid in full.
Typical bankruptcy clients are often just normal people trying to get on with life, but who are suffering to pay their bills after a single life-changing event.
Money problems can affect anyone regardless of age, gender, race, income, location or ability to manage their money.
If you recognize your situation in one of these typical bankruptcy clients, then why not fill out our Free Bankruptcy Evaluation form and see if we can help you?