Sometimes bankruptcy is simply unavoidable. Medical expenses have long been a major driver of personal bankruptcy. Today it’s often job loss. Divorce can wreak havoc on personal finances, resulting in one or both spouses falling behind on the bills. Or, sometimes it’s just bad luck — a business failure, an adverse legal judgment, or a kid who gets into trouble. But, of course, there are people who just lose their common sense along the way and run up credit card debt they can never repay, or buy a home they can never afford.
Berg, McLaughlin & Nelson understands that sometimes people just need a fresh start, an opportunity to put their financial lives — even their emotional lives — back in order. Attorney Megan Johnson leads the firm's personal bankruptcy practice to assist clients in discharging or substantially reducing their debts. The attorney fees are fixed and competitive so that clients can more easily get the legal help they need.
For many Idahoans, a “Chapter 7” liquidation bankruptcy is the ticket to that fresh start. The law provides a “means test” for qualification, which the firm’s lawyers can quickly use to assess a client’s eligibility. If eligible, the law allows a person to discharge almost all their debts. Tax debts and student loans are an exception. Many clients are able to take advantage of a Chapter 7 bankruptcy and still keep their home, car, retirement funds, tools, a gun, and other necessities of life.
Those who can’t qualify for a Chapter 7 bankruptcy may be eligible to substantially reduce their debts through a Chapter 13 bankruptcy. The firm’s lawyers assist the client in developing a court-approved repayment plan that permits the debtor to keep the home and many items of personal property, while paying off the unsecured creditors at pennies on the dollar.