Personal Bankruptcy

Dear Sir/Madam

Thank you for your recent inquiry regarding bankruptcy. The first thing we want you to know is that bankruptcy is probably not what you think it is. It is, in fact, one of the most misunderstood of all legal matters.

The Federal Bankruptcy System of today allows debtors, who are in need of financial relief, to rid themselves of unneeded, unsecured debts while keeping items of collateral, which are needed, paying secured debts, and, in addition, paying only a small percentage of unsecured debt, or in many cases, nothing at all to unsecured creditors.

Secured debts are usually secured by such collateral as houses, mobile homes, automobiles, furniture, jewelry, et cetera. These are things you ordinarily want to keep and the bankruptcy system of today will almost always allow you to do so.

More importantly, in almost every instance, we pay absolutely no interest whatsoever to the unsecured creditors, and only 8.5% to secured creditors (no matter what the contract says). This allows us to reduce your debt by thousands of dollars in interest alone.

We generally can reduce the balance, interest and monthly payment on most of your debts with the exception of your house payments. By reducing your monthly obligations on other debts, you should then be able to make your house payment and improve your cash flow.

Probably the most important facet of bankruptcy law is the "automatic stay". This is a legal phrase which means that upon the filing of the bankruptcy petition with the Federal Bankruptcy Court, all of your creditors (including the IRS and other governmental creditors) arc prohibited from contacting you in any manner whatsoever. They cannot telephone you or send harassing letters. Even state law judges are prohibited from proceeding against you (except for criminal matters) without the permission of the Federal Bankruptcy Court. This is the reason these bankruptcy laws involve federal jurisdiction.

There are generally two types of bankruptcy which apply to individuals and married couples. They are Chapter 13 (reorganization) and Chapter 7 (liquidation). In spite of what you may have heard, neither of these types of bankruptcies force you to necessarily give up your houses, cars, furniture, etc.

Note: It is extremely dangerous for anyone other than an experienced bankruptcy attorney to attempt to file a bankruptcy on your behalf. There are a number of other things which need to be taken into account and the Federal Bankruptcy Laws are quite complicated. Additionally, 90% of all lawyers know little or nothing about bankruptcy. It does, therefore, require an experienced bankruptcy attorney.

Perhaps you have heard that you have to appear in court. This is true, however; you do so with your attorney sitting beside you and you simply answer questions for approximately five minutes. It is very informal and the Trustee (not a judge) asks the questions.

Our initial consultation is absolutely free and no pressure will be placed upon you to hire us. We wish to provide the correct information about bankruptcy, instead of having you rely on what you have heard, so that you can make a well informed decision. If we feel you can solve your financial problems without filing bankruptcy, we will advise you accordingly. Regardless of what your decision is, we encourage you not to make the decision at your initial consultation with us. Instead, we will advise you to go home sit down and discuss the matter in the privacy of your home as all such important decisions should be made by a family.

I look forward to meeting with you and helping you and your family solve your financial problems. I can almost guarantee that some form of bankruptcy will greatly reduce your debt and allow you and your family to live better and to get a "fresh start" in your lives.

With warmest personal regards, I remain,
Robert H. Cooper