Thinking about filing for Bankruptcy?

Bankruptcy is a legal proceeding involving a person or business that is unable to repay their outstanding debts. However, beware of the incorrect common perception that filing for bankruptcy means that you will no longer owe your creditors, or that it is available for everybody.  Based on your individual situation, there may be criteria that applies which makes it impossible or disadvantageous for you to petition for bankruptcy.

Avoid Bankruptcy

Avoid Bankruptcy

Try to avoid bankruptcy if it is at all possible. Sometimes bankruptcy is the only solution, for example, if the debt amount is large enough ($100,000 or more).

There are other financial reasons that makes bankruptcy a viable option, and finally, if you qualify.

Debt and Collections - Bankruptcy

Why Bankruptcy Should Be Avoided

But more often than not, it proves to be a bad choice for most consumers and you won’t qualify.


Here are some facts to consider:

  • The debt amount is too low.
  • The bankruptcy can remain on your credit profile for ten years.
  • You must pass a “means test” first. This is a process to determine if you will be filing a chapter 7 or a chapter 13.  Here’s the difference:
  • Bankruptcy rules have been changed to make most consumers file a ‘13’ before they can file a total discharge of debt through a ‘7’. Chapter 13 is a reorganization of your debt and in many cases this is what you will have to do before you can qualify for a chapter 7. (Chapter 7 is what most consumers want when they think in terms of bankruptcy).
  • But you will probably be mandated to file a Chapter 13 first. In which case your income will be taken from you and disbursed among the creditors you are seeking relief from.
  • If after a year it is determined that you are still not able to survive financially, only then can you apply for a chapter 7. This new bankruptcy rule will allow the banks and creditors another year of payments before you can actually discharge your debts.

Based on the above and other factors, bankruptcy should be only considered as a last resort.  So what are your options?

Heritage Credit Repair Protocols for Bankruptcy

Our Amazing Protocol

The Heritage Credit Group uses an amazing protocol.

The banks and creditors that you are seeking relief from and also the credit bureaus routinely violate state and federal laws concerning the accounts that you owe.

Since following the letter of the law is not profitable and also since most consumers are not aware of their rights, these entities typically act with impunity.

Our protocol for clients who choose not to file bankruptcy or who do not qualify for bankruptcy is to correspond with our clients’ banks and creditors in a certain format on their behalf.

They will typically not pay any heed to our correspondence with them, causing them to violate federal laws that were written on behalf of you, the consumer.

This will result in a lawsuit against the banks and creditors and this is what a consumer can expect when a lawsuit is filed against their banks or creditors:

  1. The debt can be expunged! (You no longer owe it, so no need for bankruptcy).
  2. The debt can be removed from your credit report! (Built in credit repair).
  3. In many cases, there may also be a cash award as well. (Money in your pocket instead of owing money to the creditor)


An Attorney’s Testimonial On HCG’s Amazing Protocol

Please take a moment to hear from one of our attorneys about this amazing protocol:

Since following the letter of the law is not profitable and also since most consumers are not aware of their rights, these entities typically act with impunity.

Look below to see just a few of our clients who avoided bankruptcy, improved their credit score and won cash awards.

The Heritage Group helps consumers avoid bankruptcy and receive money
from their creditors…