Jack’s story: When bad things happen to good people and they make it through bankruptcy

When to take advantage of Chapter 7 and 13 is circumstantial. Here are a few things we hear from clients who tell us how and when they decided to move forward towards a fresh financial start.
When to take advantage of Chapter 7 and 13 is circumstantial. Here are a few things we hear from clients who tell us how and when they decided to move forward towards a fresh financial start.

A friend suffering from financial troubles and bad credit recently shared their story about his experiences shortly after his bankruptcy discharge. For this article, we will call our friend “Jack.” He was impressed that during his bankruptcy case, the only people who knew his financial woes were his listed creditors and his immediate family he told about the bankruptcy. When Jack told his ex-wife, she thanked him and said she had heard of ex-spouses using bankruptcy as a tool to avoid child support. Jack always put his kids first and would take extra jobs if he needed to support them. Jack really is a good guy and worked hard to save money and do things right.

Jack worked hard at his job in the career services department at a local college and he felt very lucky to have a good job during the economic troubles that started in 2008. Even though Jack worked to help graduating students and young alumni find jobs, his own position was in jeopardy and he had no idea. He worked in a satellite location of a larger university whose board of directors voted to approve a resolution to sell the location where Jack worked due to a consistent decrease in student enrollment. At first it looked like Jack would be moved into a similar position at another location but it did not pan out.

After the severance ran out and Jack started dipping into his 401k to pay the mortgage and bills because he couldn’t find another job, other than a lesser paid position. Jack accepted an hourly administrative position that offered benefits working at an insurance company. The money was less and his child support was reduced but he was happy to be working again after being unemployed for over a year while he depleted all his cash reserves.

Out of cash and facing bills he couldn’t pay, Jack was unsure how he was going to keep everything paid and still have time to see his kids when he had visitation every other weekend. His second priority after family was his home, the one in which he grew up and was on an acre lot in an area that became built up with subdivisions over the past few decades.

When he first looked into bankruptcy, Jack felt defeated. He started to adjust his expectations to prepare for his new reality. Whether it is fair or not, Jack was resolute to keep a positive attitude and work hard to continue on a smaller budget.

At the office of his bankruptcy attorney Jack just about fell out of his chair when he learned, he may be able to keep his house and a few prized possessions by filing for Chapter 13 bankruptcy, as opposed to a complete discharge under Chapter 7. The Chapter 13 reorganization plan allowed Jack to discharge a portion of his debts and make structured payments to the trustee so he could come up for air.

Since the bankruptcy, Jack found a better job in his field and was able to save more money to spend with his kids and his new fiancée. The bankruptcy laws are there to help people like Jack who get slammed by life through no fault of their own. If you know someone like Jack, we can help them at Joseph Wrobel, Ltd.,

Joseph Wrobel, Ltd. helps people get control of their finances and a fresh start at financial freedom. The firm’s website contains informative videos about financial issues as well as bankruptcy protection for families who want a fresh start. To keep in touch and read about consumer finance news and stories you can Like the firm’s Facebook page and Follow Joseph Wrobel. Ltd. on Twitter. If you need immediate legal assistance, please call Joseph Wrobel, Ltd. by calling (312) 781-0996 to talk to an attorney.