Have You Heard about the Nonprofit Company that Helps People File for Bankruptcy?
Bankruptcy may provide a fresh start for those overwhelmed by their debt burden. Deciding to surrender hope is one thing while the actual process of completing bankruptcy proceedings can be a disaster for people who are already down and out. But a nonprofit from Brooklyn wants to make it easier and cheaper for people to file for Chapter 7 bankruptcy while reducing the stigma against bankruptcy.
Upsolve is a nonprofit developed by Rohan Pavuluri, a Harvard student and Jonathan Petts, who started a brick-and-mortar legal aid clinic in 2016 before realizing that a user-friendly software product could help more people, who could not be accommodated in their office. Several hundred people have filed bankruptcy forms via Upsolve and the website has enabled write-offs exceeding $10 million in debt.
How Upsolve Eases Bankruptcy Filing
Those considering bankruptcy can visit their official website and answer 10 questions to assess if they are a good fit for Chapter 7 bankruptcy, which Upsolve facilitates. People seeking Chapter 7 (liquidation) bankruptcy, are often not just down on their luck but face long-term financial disadvantages. All users of Upsolve are also under median incomes as for those with higher incomes or holding considerable assets, Chapter 7 bankruptcy may not be a good fit. The website asks a series of questions, and invites users to upload photos of pay slips and other relevant documents to complete bankruptcy-filing forms. An Upsolve staff member reviews forms before the client files these papers at their local bankruptcy court. Then, the user returns to the Upsolve site for credit and savings education.
Debt Counseling is legally required for individuals filing for bankruptcy but that component of the process, although provided by certified organizations, lasts just an hour or two, which is inadequate. Upsolve just does not help people get back on their feet, but also makes sure that they remain there and thrive post-bankruptcy. Their real mission isn’t to help people file for bankruptcy, but to financially empower people and rehabilitate those in severe financial distress.
The cost is zero dollars for each and every user, instead of the $1,000 or more, charged by attorneys to assist clients filing for bankruptcy. But after users returned to Upsolve to ask how they could contribute, the team suggested a $25 donation from those who benefitted. It’s a good way for Upsolve to be accountable to their users. The nonprofit has supplemented fundraising sources with this very tangible and optional feedback from users.
Can Filing for Bankruptcy Be Easier?
In 2017, more than 472,000 people filed for Chapter 7 bankruptcy, as per government dataand this number has dropped since peaking at more than 1 million per year after the recession of 2008. But a recent study analyzing data from the Consumer Bankruptcy Project found that bankruptcy filers aged 65 and more, has increased almost by 500% since 1991. An estimated 5 million to 10 million people could benefit from the fresh start provided, after filing for bankruptcy. It should be easy for people in financial distress to access their lifeline and get a fresh start. Such an access to a fresh start could help people struggling with debt to become more involved in the economy.
Bankruptcy improves people’s credit because they all of a sudden have higher credit scores post-bankruptcy, and as such bankruptcy is a rehabilitating mechanism. So all of a sudden, these people can now be active members of the economy where they have credit they did not previously have access to.
Credit Scores Affected
Debt-relief experts opine that bankruptcy filers won’t see immediate benefits as credit scores will certainly go down upon the filing and reporting of bankruptcy, However, the drop in score will depend on the score upon filing. Chapter 7 bankruptcy is retained on your credit report for 10 years, though your score bounces back. How much and how quickly the score rises will depend on the individual and specifics about that person’s credit.
Admitting Financial Failure
Pavuluri says that his primary fight is to reduce barriers to bankruptcy filing. One major challenge for Upsolve is the persistent stigma of admitting financial failure through bankruptcy, mostly developed by lenders reminding borrowers that it is immoral not to repay your debt. People are embarrassed to file, when they should not be as bankruptcy is one of the lifelines available, and people should take due advantage, in the absence of adequate government support.
More in Debt
Toni Braxton’s Money Troubles Overshadows Her Breakup With Birdman
It just is not the best time for singer-songwriter Toni Braxton. She just broke up with her fiancé Birdman and they...March 7, 2019
You Won’t Believe How Much These Stars Make for Endorsing Your Favourite Brands
Whether it’s a fragrance, a drink or just fancy sport shoes, the money that celebs get to make appearances and endorse...March 6, 2019
You Won’t be Able to Believe How Expensive These Celeb Engagement Rings are
Think about it, every friend or family member who has been engaged recently got a diamond engagement ring to present to...March 6, 2019
When it Comes to the Most Expensive Royal Wardrobe, Meghan Wins Over Kate
Dressing like Duchess Meghan does not come cheap. Right from her very first days as a newly minted royal, she has established herself...March 6, 2019
Denzel’s Net Worth of $220 Million Has Hollywood Turning Green with Envy
Denzel is an amazing actor, no doubt about that. He shines in whatever role he takes on and his impact on...March 5, 2019
Haters are Dissing Gwyneth’s Lifestyle Brand and It’s only Making Her More Money
In the world of entertainment, business and profit, even bad publicity is good publicity. And who knows this better than actress...March 4, 2019
The Shocking Reason Justin Bieber is Avoiding Selena Gomez
The story of Justin Bieber and Selena Gomez could make a blockbuster movie. The pair dated in their innocent years and...March 3, 2019
Travis Scott Stands Up For Himself Amid SHOCKING Cheating Scandal
When it comes to men, the Kardashian family is constantly embroiled in scandals that keep their reality television world spinning round and...March 3, 2019
Oprah Winfrey Loses $50 Million in a Disappointing Stock Price Tumble
The year didn’t start well for media mogul Oprah Winfrey, who lost close to $50 million due to a bad investment...March 1, 2019