As I begin my 40th year in the Bankruptcy Practice, I have been asked, “What is the best advice you have given to a potential client”? Without hesitation, I can say that the best advice I ever gave was to not file for Bankruptcy. Strange coming from a Bankruptcy Attorney, yet I think it is very important advice for many persons to consider before making the decision to file a Bankruptcy case.
Many years ago, an older Bankruptcy Attorney gave me the explanation that Bankruptcy is nothing more than a tool to use if needed to handle financial problems. I never forgot that and have tried to convey to my clients that you do not use this tool unless you have exhausted all of your other legal remedies. In most cases, Bankruptcy is a last resort when all other avenues of relief have failed. Bankruptcy has serious repercussions and is not to be taken lightly. You can lose your assets, including your house and vehicle, and potentially even money you were hoping to recover due to personal injury or maybe from an inheritance. So, serious stuff indeed.
With that all said, Bankruptcy can also be a tremendous help to persons that have unmanageable debt that can be the result of job loss, divorce, medical issues, etc…. Bankruptcy has been such an important part of our society that it is part of the Constitution of the United States and was very much on the minds of the Founding Fathers of our Country in the late 1700’s. With the creation of the Modern Chapter 13 Bankruptcy Program in 1978, many of the negative aspects of Bankruptcy filing noted above regarding the loss of assets were addressed, and Chapter 13 Bankruptcy now provides a way for many individuals to get substantial relief from their creditors and keep their property.
If you or someone you know has debt problems and you would like to get a consultation regarding Bankruptcy, please feel free to call our offices at any time. 615-852-7853. I will be happy to go over your options and explain how the Tool of Bankruptcy works.
David E. Phillips, Attorney
9/22/2025