Pre-Bankruptcy conversation with Tim McFarlin

Timothy G. McFarlin is an attorney at McFarlin LLP who practices many areas of law, including real estate law, debt reorganization, bankruptcy, business litigation, consumer law, and mortgage litigation. Clients range from individual consumers to large national corporations.

Bankruptcy is nothing to be ashamed of. It is a financial tool.

Tim shares that bankruptcy is actually something that started in the Bible. In the Bible debts would be forgiven every seven years, called the year of jubilee. This principle was converted into bankruptcy law in the United States.

It gives individuals and entrepreneurs the opportunity for a fresh start. So many great things likely wouldn't have been created if those entrepreneurs weren't allowed to start over when ventures don't work out.

We discuss the different types:

• Chapter 7 is the most common - liquidation of your debt
• Chapter 12 is for family farmers
• Chapter 11 subchapter 5 is for smaller business owners. This is a new policy that just passed
• Chapter 13 is usually for when people can't do a chapter 7 because you have too much income

it is important to get legal advice from a qualified lawyer in your area before making a decision about bankruptcy.

What you should NOT do:

• Transfer my assets out of my name.

You can get in contact with Tim at his website: https://www.mcfarlinlaw.com