Sample Bankruptcy Case | Job Loss

A southern New Hampshire couple with teenage children both had very good-paying jobs. Unfortunately, the mother’s employer was downsized, and her work was reduced to 30 hours per week. The father lost his good-paying job although he was able to obtain a different job at a much lower salary. As a result of the two lower incomes, the family was getting further and further behind in their first and second mortgage payments, boat payments, car and truck payments and their usual credit card obligations.

After trying to hold on for two years, they saw their economic hole getting deeper and deeper. They both were able to get a fresh start on life and rebuild their credit, while keeping their family together. They were able to successfully discharge thousands of dollars in credit card and similar debt obligations. Unfortunately, they lost their expensive boat and fancy truck. Both of those assets had no equity after the debts. They were able to keep their personal cars, their household furniture and appliances, their 401(k) plans and their personal sporting equipment. They could have kept their house but decided to move out since their house was worth much less than the first and second mortgages. (They could have filed Bankruptcy leadings to keep their house but they decided against it to lower their living expenses.)

THEY GOT A FRESH START WITH NO MORE DEBT. Interestingly, after they filed bankruptcy, they were contacted by several credit card companies, since they actually were a better credit risk now that they were discharged from their creditor obligations.