Sometimes simpler is not better. Sometimes cheaper is more expensive in the long run. Those thoughts occurred to me after meeting with a new client regarding her financial problems. The client, a 61-year-old single women earning $14 per hour, was struggling to pay $9,000 of credit cards. Her income had declined after a change in jobs and there was simply not enough money left over to pay the credit cards after paying the mortgage, utilities, the car payment and a home equity loan she obtained to pay off previous credit card balances.
On the surface, this was an easy Chapter 7 case. I say that because she was well below the Nebraska median income level of $40,429 and she had no unprotected assets. To file Chapter 7 a person’s income cannot be too high and they can protect only so many assets. This client had no problems with either of these issues and I believe most attorneys would have recommended that she file Chapter 7 to alleviate the monthly credit card payments.
this client did not belong in a Chapter 7 case and the cheapest attorney hired would probably be the most expensive choice in the long run