Upsolve Nonprofit Offers Free Chapter 7 Bankruptcy As A Solution For People With High Debt
“Even to be broke you still need money … The first call, the first date was free. And then they quoted me and I’m like, really? So on top of what I owe , I’m going to pay you Another 15,000, 20,000? How is that possible? They’re right after your money. They don’t even know what you’re going through and they’re already asking for a supply, they’re asking for these packages, and they’re even recommending a loan company if you can’t pay it, ”Balam said.
Balam found himself surfing the couch and said he felt ostracized by his friends and family.
Hollywood resident David Kearse, 86, can relate. During the pandemic, Kearse incurred thousands of dollars in unexpected medical bills totaling over $ 20,000.
“I had a fall a year ago and had to have caregivers first 24 hours a day and then daily from an agency. They were costing me $ 4,000 a month and my pension income was about half that, so I used up all my resources. used all of my credit cards, ”Kearse said.
Unable to pay the legal fees of a bankrupt lawyer, the two desperately searched the Internet and stumbled upon the nonprofit. To resolve, a free service that allows low-income Americans to file for Chapter 7 bankruptcy on their own.
“There is this cruel irony in America that it costs an average of $ 1,500 in legal fees to file for bankruptcy. So what we set out to do is make this process free for low-income families who cannot. not pay the legal fees, which in many cases look like modern voting taxes. When you can’t pay the fees, you can’t access your rights, “said Rohan Pavuluri, CEO and co-founder of Upsolve.
Experts believe personal bankruptcy filings could increase in California with the majority of financial aid during the end of the pandemic, like unemployment benefits and the moratorium on evictions.
According to a projection from the Department of Justice, bankruptcy filings of individuals and businesses will double in 2022 compared to what they are in 2021.
“It cleared my head so I wanted to create again. I wanted to write again. I was free to do it without anxiety,” Kearse said.
“Bankruptcy is in American DNA. It’s about giving people a second chance after going through these difficult times,” Pavuluri said.
While Kearse and Balam weren’t put off by the stigma surrounding bankruptcy, many people are – and they could end up homeless or in serious financial trouble because of the way the system is set up.
For more information visit www.upsolve.org.
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