Board game

The dictionary defines insolvency as the inability "to satisfy creditors or discharge liabilities, either because liabilities exceed assets or because of inability to pay debts as they mature." Insolvency can effect de facto bankruptcy. Filing a bankruptcy petition may simply be acknowledging a done deal.

Monopoly. That board game where you roll the dice, clomp around in your thimble or shoe, pass Go, collect $200, then buy big. What's the best strategy? Buy everything. Thing is, Monopoly's real estate market hasn't had a drop in over 70 years. In life (not Life, that other board game), things have turned out differently. You may buy everything, but so may your co-players and their rolls might be luckier. Then the rich get richer at your expense. You can wheel and deal, mortgage your properties, beg and plead. But when your debt exceeds your worth, you are bankrupt. Game over.

Thankfully, life doesn't work quite that way anymore. We still invest big sometimes. And lose big. But if we get in over our heads, it is no longer the end of the road. Federal law provides that we may petition the Bankruptcy Court and be forgiven our debts. Then climb back into your wheelbarrow or race car, hop the squares, collect $200. Chance might even let you win a beauty contest.

So, what's the cost of that freedom to walk your Scottie dog, shuffle your iron or sail your battleship? It can be very little. It is rare that people lose any property in bankruptcy. And attorney fees can be low. If you live in San Diego or Imperial Counties, we would be happy to help you. Call 858-344-0500 and let us know what's going on.

Postscript. Not all debts are eliminated in bankruptcy. Due to public policy, certain debts are here to stay. For example: domestic support obligations, student loans, taxes (with certain exceptions) and debts to society (such as fines for drunk driving).

Generally, by the time someone is contemplating declaring bankruptcy, they already meet the dictionary definition of insolvency or bankruptcy. That doesn't necessarily mean they need to declare bankruptcy. Their debt may be relatively small, and they may only be experiencing a temporary set-back. But, if they cannot possibly pay the debt in the foreseeable future, then bankruptcy may be a viable or even necessary option.

Robin

www.BankonitSD.com