Return on Investment

Return on Investment

What if I told you you could get a return on investment of more than 2,000% in just 4 months? 

Don’t worry, I’m not a snake oil salesman and I’m definitely not the Wolf of Jefferson Street.  I’m a bankruptcy attorney and what I’m telling you is absolutely true.  

See, I calculated the average cost of a Chapter 7 Bankruptcy in my office which is somewhere between $1,500 and $2,500 dollars.  I then took the average amount of debt that we discharge, which is right around $50,000.  Then I looked at the average amount of time it takes for a Chapter 7 to run from start to finish.  When I ran the numbers, I got a return on investment of 2,602.70%. That’s a number Warren Buffett or Jeff Bezos would jump all over.  In fact, outside of winning the lottery or striking it rich at a casino, there’s no faster legal way to get that kind of return on investment anywhere. 


The biggest benefit of bankruptcy is that you can stop paying any creditor that you wish to discharge.  No more credit card or medical bills. No more garnishments. None. Zero. 

Think about how much better your monthly budget would be if you could shave off hundreds or even thousands of dollars worth of bill payments.  

The day you file bankruptcy, the automatic stay goes into effect.  That stops all collections against you dead in their tracks. .

This means that unless it’s a car loan (and you want to keep the car) or a mortgage (and you want to keep the house) you don’t have to make another payment to any of your creditors. 


A Chapter 7 means that within 4-6 months, all your unsecured debt will be wiped out.  This will immediately increase your credit score.  Don’t believe me, ask the CFPB

Car loans, mortgage loans and home equity loans are secured by the property, and if you want to keep them, you’ll have to keep making payments.  

If you don’t want to keep them, you typically get somewhere between 3-6 months in that property before the bank repossesses it. You get to keep it that long without making a payment.  That’s a good deal. 

All in all, the benefits of filing a Chapter 7 are incredible.  

There’s almost no legal way to gain the kind of return on investment you get through bankruptcy.  With a small investment and the stroke of a judge’s pen, you can find yourself $20,000-50,000 better off.