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Really? Bankruptcy Will Do That?

Did you know that the IRS is afraid of the Bankruptcy Court? Yes, that is true. Bankruptcy is the one way you can shut down the single most powerful and aggressive creditor—The United States of America. Many people enter into a bankruptcy consultation with fear about what the IRS or some other powerful creditor may “think” if they file bankruptcy. The truth is, they will think they need to be very, very careful not to anger the Bankruptcy Court. It is sometimes hard for people to accept that the Bankruptcy Judge primarily is there to protect the person or entity filing bankruptcy and to make certain that they get a new start.

Another example of the power of the Court is the General Motors fiasco concerning the recall on the ignition switch. You would think that GMAC would be flooded with lawsuits over the fact that they were slow to get the word out. The problem is that those claims were largely extinguished in the recent bankruptcy filing by the company. Several advocacy groups have requested that GMAC put up a fund of $1 billion dollars and waive their protection from the bankruptcy up to the amount of that fund. It is likely that GMAC will do that, but the amazing thing is that they are currently protected.

Have you had your driver’s license suspended because you got into an accident and your insurance has lapsed? Bankruptcy can get your license back for you. The reason that you get your license suspended after an accident is that you failed to show how you would financially provide for the damage done. When you file bankruptcy, the Bankruptcy Court wipes out the obligation so you no longer are responsible financially. The Driver’s License is reinstated because you have taken care of the financial responsibility.

Have you got a tow truck following you around because you cannot catch up on your car payments? Bankruptcy will stop the creditor from taking your car and putting you in an even worse situation. Bankruptcy puts up a big stop sign that will prevent your creditor from taking action against you! If they somehow get your car before they got notice of the bankruptcy, they get to return it to you in the same shape as it was when they took it.

Have you got a foreclosure pending on your house? Yes, bankruptcy will stop that as well. No, you don’t get a free house, but the bankruptcy will allow you to restructure the amount of the debt that you are behind and pay that back over a five year period. You get to go from desperately about to lose your house to an actual plan to pay it back and retain the biggest investment you have ever had.

Have you got a creditor who is threatening to garnish your bank accounts to collect a debt? Bankruptcy will stop that as well. How about those endless calls to your telephone and to your employer constantly letting everyone know that you are struggling to make ends meet? Yes, that will stop also.

Don’t forget about the fact that you are not able to sleep or that your marriage is suffering from the stress of the debt. It is amazing how much stress will be removed once you formulate a plan for attacking the debt. Most individuals very quickly realize that they are sleeping better and that their marriage is significantly better because they have finally begun to attack that huge elephant in the room that has been the focus of all of their waking and sleeping hours!

If you are faced with too much old debt, bankruptcy can be used to help you also become more lean and efficient. It can help you begin setting money aside for the children’s education and future. If you are in this situation, book an appointment with a skilled bankruptcy attorney. At Bailey & Galyen we would like to help you achieve your new future.

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Michigan Bankruptcy Firm files for Bankruptcy?


As strange a headline as it may appear, it is true. A top Michigan Bankruptcy firm, Frego & Associates, has filed for bankruptcy. It may seem unusual, but bankruptcy protection works for everyone. They had become, like many companies, just a little bloated and had more employees than they could support. The good news is that bankruptcy will let them restructure to remain a top law firm in Michigan. They will have just stripped themselves of some debt and overhead. When they emerge from their bankruptcy, they will be a profitable company better able to serve the needs of their many clients.

Even a bankruptcy firm will not try to represent themselves. There is an old saying that someone who represents themselves has a fool for a client. They have retained competent bankruptcy counsel to make certain that they come out leaner and stronger than before they filed.

If you are having difficulty with your cash flow, it is a good idea to seek professional help and see a qualified bankruptcy attorney. Most good bankruptcy attorneys will give you a free consultation at no risk. You then can decide if you need the professional help.

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Who Can You Trust?

By J. C. BAILEY III

We have learned over the years to be skeptical. We have been mislead so frequently that our expectations have been permanently altered. Advertising has promised miracles and delivered dissatisfaction. Relationships have been launched with optimism, only to crash on the rocks of reality. As this is being written, we find ourselves in the middle of another political primary season. Need I say more?

A challenge to counseling people is the strange sources from which they seek advice. It is understandable that a well meaning friend or family member would be trusted, even when they have no expertise in a legal matter. I can even understand how the internet could fool you into reliance on what appears to be authoritative. When advice is in writing and so confidently stated, it must be true. Right? While I can cut you slack on getting bad advice from associates or the media, I am shocked that you would trust your opposition. Almost every week I hear someone argue that their creditor, ex-spouse, opposing party in a lawsuit, etc. has expressed an opinion that they value above that of their attorney. It’s unwise for chickens to take the advice of the fox for the security of their hen house. It is equally unwise to listen to people who stand to gain from your failure. Please retain and listen to experienced counsel. Someone on your side. Some one you can trust.

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Unsafe Water, Lawsuits and Bankruptcy

A company called Blitz USA has caused a problem in West Virginia by polluting the water system. As can be expected, lawsuits began to be served upon the company. While they did not make great decisions, it soon became apparent that the company could not pay the claims that were filed. They filed bankruptcy to stop the lawsuits long enough to see if they have adequate assets and insurance to cover the loses.

While individuals do not have to file bankruptcy because they polluted the waters, often they also have to file bankruptcy to stop a flow of lawsuits. Bankruptcy gives you the breathing room needed to deal with the economic bleeding and the attack on the person’s assets. It can let you start over and get a “re-do.” None of us makes all great decisions. Sometimes we get hit with things completely out of our control. If this is where you are, and you are having difficulty with your cash flow, it is a good idea to seek professional help and see a qualified bankruptcy attorney. Most good bankruptcy attorneys will give you a free consultation at no risk. You then can decide if you need the professional help.

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Brookstone Gadgets: Way of the Future or Behind the Times.

Brookstone is that fun little store in the mall that we all love to stop by and look at all the neat little gadgets that are for sale. It carries that cool stuff that one cannot find anywhere else. Remote controlled chairs, key chains that beep, and every type of massage and radio equipment known to mankind. However, keeping the stores up to date has been harder and harder. Malls are not inexpensive pieces of real estate to maintain and they are largely a failing model. Malls have been closing at a much faster rate than they have been opening. Unfortunately, Brookstone has heavily invested itself in the mall model. What they want to do is follow the Chick-fil-a model. Chick-fil-a saw this trend years ago and started building restaurants that were independent of the malls.

The problem is even greater for Brookstone. They have very high-dollar leases that keep them locked in. They need substantial capital to upgrade their inventory. Those cool little gadgets have not really changed in the last ten years and there is not much new in those stores. That takes money and they are using all their money keeping those high-rent stores open. All of this is happening as mall traffic has dropped. Brookstone has attempted to sell the company for a number of years. Unfortunately, there have been no takers.

The latest rumors indicate that Brookstone will look to file bankruptcy in the next couple of weeks. If you are a fan of Brookstone, take heart! It does not necessarily mean that the company will end. Look at American Airlines. They filed bankruptcy and have come back stronger than ever. If Brookstone files a reorganizational bankruptcy, they will be able to get out of those leases that are draining all of their capital. If they decide that the company just cannot succeed under any model, they have the option of closing the stores also. Just like individuals, they can only spend the money they have and sometimes that does not get them where they need to be.

Individuals are often caught in the same situation. They have more and more of their capital going to pay debt. They get to the same place as the big companies. They no longer have the capital they need to purchase transportation or housing to make a change. Just like the large company, sometimes they need to reorganize or simply escape the traps they are in. Bankruptcy gives them that option. It may give you the fresh start to walk away from those old debts caused by changing economic times, divorce or illness.

If you are faced with too much old debt, bankruptcy can be used to help you become more lean and efficient. It can help you begin setting money aside for the children’s education and future. If you are in this situation, book an appointment with a skilled bankruptcy attorney. At Bailey & Galyen we would like to help you achieve your new future.

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