Interview with bankruptcy attorney Christoph Scheid

  • 2 months   ago

Dear Mr. Scheid, could you please introduce yourself briefly so that our audience could know who we are talking to?

With pleasure. My name is Christoph Scheid, I am a lawyer with a degree in business administration, an economist and I graduated from Switzerland with a law degree. But what I am most proud of is that the Bar Association awarded me the title of “Specialist in Insolvency Law”. I'm the head of the debt counseling service. 

What distinguishes a specialist lawyer for insolvency law?

The name is obtained when one has acquired special and above-average experience and knowledge over the years. You have to pass a comprehensive course with numerous exams and then successfully work on many cases from the most varied areas of insolvency law in an insolvency law firm, for example, chapter 7 bankruptcy,, of Attorney Debt Fighters. In addition, as an insolvency administrator appointed by the court, you have to handle insolvency proceedings and must have successfully accompanied many clients in an advisory capacity from the beginning of the insolvency to the final date, so that people are free from their debts.

Who are the bankruptcy partners?

Attorney Debt Fighters are your partner in insolvency. We accompany you from the free initial consultation to the conclusion of the insolvency proceedings. You will always be advised and accompanied by a specialist lawyer for insolvency law! We are here for you – personally on-site. The costs are transparent. We work with a flat rate. With us, the door is open to both old and young people, employees and the self-employed.

Again and again it goes through the press that dubious advisors are playing with the fear and hopelessness of the indebted people and cheating them out of their last money. How do I recognize a dubious advisor?

You are on the safe side with a lawyer, tax advisor or notary. With all other consultants you should ask specifically whether these supposed "insolvency experts" have the certificate according to § 305. In my opinion, this certificate represents the absolute minimum. You don't lie down on an operating table and let a self-proclaimed would-be surgeon cut your stomach open? In addition, you should be very careful if the advisor advertises cooperation with a lawyer who is often located somewhere completely different in the USA, this procedure only serves to circumvent the Legal Advice Act and is intended to cover up one's own educational deficiencies. The clients have to pour themselves wine and admit that the liabilities often amount to well over $ 50,000, $ 80,000 or even more. These debt sums are not a problem and can be processed as part of the state debt relief program. Bankruptcy is not rocket science. But, it requires competent and serious advice and processing as well as support through the insolvency.

Many counseling centers do not include legal support during insolvency and cannot be offered by the centers, as this would otherwise violate the Legal Advice Act. The clients are pushed into bankruptcy in the hope that everything will go well. Many customers are concerned with 5 or even 6-digit debt amounts. It's about a lot of money. You are then in bankruptcy like a ship at sea without controls and hope for a good current. Quite different with us: You will always have an insolvency partner at your side until the closing date. This insolvency partner is always a specialist lawyer for insolvency law. We guarantee the best advice. The bankruptcy is a unique opportunity to press the “reset button” and start all over again. But it should or can actually only happen once in a lifetime. Therefore, you should always ask yourself the question: Can I and will I do without serious, professional and competent advice?

What options do I have as an over-indebted person?

Of course, you can try to reach an agreement with the creditors as part of an out-of-court settlement attempt. You are threatening bankruptcy, so to speak, and thus improving your negotiating position. I myself have tried this kind of thing hundreds of times and can say from my experience that the chances of success are rather slim. Especially, with a high number of creditors, the chances of success decrease. Many institutions, such as certain large banks, always reject such out-of-court attempts at agreement and write off the claim in full. But, even public institutions, such as the tax office or health insurance companies, cannot agree to such an offer. Imagine if the tax office would agree to someone who says: I only pay 25% of my tax debts, please leave me the rest! Then soon nobody would pay more taxes and just want to negotiate! Ultimately, the only real solution is to go into bankruptcy.

But going into bankruptcy is not a tough step?

I cannot understand this statement in any way. Many clients - before they let us convince them of the advantages of bankruptcy - have to struggle with enormous problems in their debt situation: yellow letters in the mailbox, bailiffs at the door, account attachments, salary attachments from employers and colleagues, often even Threats of detention etc. Therefore, my urgent appeal: Let us help you! “Insolvency” is a debt relief program from the government, more than 165,000 people use it each year! You will not be driven through the streets tarred and feathered. Don't be ashamed. Many people want to avoid bankruptcy out of pride. These people often pay with their health, their marriage or even with their life. In my opinion, it is more an expression of intelligence to seek advice and make use of a law that helps you. Many laws are disadvantageous, but the bankruptcy code wants to help you: then people should make use of this option! 

Every bankruptcy case is different? Or is it just a standard program?

It is a standardized processing program. However, every bankruptcy case is different because of the human component. I don't just mean the client, but also the insolvency administrator. The court appoints an administrator. The institution in the USA and England, such as large auditing firms, can handle the proceedings, the court appoints an individual person. This person can be a man or woman, can be old or young, can be a pedant or rather “laissez-faire”: we know almost all administrators personally, often from our past, as we were mostly colleagues in insolvency firms. A good human component is the basis for a successful bankruptcy process,

Do I lose everything in bankruptcy?

First of all, you will lose all of your debt. And on the assets side, a lot remains with you: A car or factory equipment cannot be seized. Otherwise there is a solution for almost every issue. Let us advise you.

As the managing director of a Private Limited Company, can I also let you guide me through the insolvency?

You should. In particular, to prevent criminal consequences. For example, we check the report prepared by the insolvency administrator, as this is always forwarded to the public prosecutor and is usually the basis for any charges. Professional advice in insolvency can often nip damaging consequences in the bud. Legal and business knowledge are required. We insolvency partners combine both.

What was your most impressive bankruptcy case?

You have to do with all kinds of people and personalities. Each case has its characteristics. We don't make any distinction between a large entrepreneur and a young employee. We are there for everyone!

What are your fees?

The amount of the fees depends on the number of creditors, the amount of liabilities and the legal expenditure.

Are installments possible?

If the fee is paid in full immediately, you can expect considerable discounts. But, we also welcome installment payments. Installment payments have the advantage that you as a customer do not have to make a total advance payment, but can test whether the promised work is actually carried out.

Could you please give an example to illustrate the benefits of bankruptcy?

One of our clients was a self-employed roofer. He owed $ 618,000. He got rid of these debts as part of the bankruptcy. The client continued his independent activity even after the bankruptcy. The insolvency partners negotiated with the insolvency administrator about the release of self-employment and the amount of the fixed monthly fee. The result was that self-employment was released for a monthly fixed price of $ 167. Thus, the client benefited from the discharge of residual debt after just 5 years. You have to let the bare numbers speak for themselves: 5 years is 60 months. 60 x $ 167 = $ 10,020. In return, he freed himself from liabilities of $ 618,000! And, the client can earn what he wants again within the released self-employment. Due to the current building boom and the need for renovation of buildings, the client is currently making a lot of money. But, he only has to pay $ 167 a month! Do you think that was a stroke of luck? NO: this is bankruptcy!

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