101 Secret to Unemployed: Free clinic in the United States Bankruptcy Court helps these financial intermediation turbulence

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Free clinic at U.S. Bankruptcy Court helps those going through financial turmoil - The Denver Post

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Print?? Email?? Font Resizefiling for chapter 7Free clinic at U.S. Bankruptcy Court helps those going through financial turmoilBy Felisa Cardona
The Denver PostPosted:?12/27/2010 01:00:00 AM MSTUpdated:?12/27/2010 03:10:34 PM MST
Since her personal training business faltered, Victoria Torok has considered filing for personal bankruptcy a route more people are taking during the recession. She attended a free clinic at the U.S. Bankruptcy Court in Denver. (Kathryn Scott Osler, The Denver Post )

Since Victoria Torok's personal-training business started failing in September 2008, the credit-card bills are piling up.

Torok did what she could to stop the bleeding by negotiating lower interest rates with her creditors, but the $35,000 debt she racked up trying to market her business was too much to overcome.

"Personal training requires disposable income, and then the mortgage crisis hit, and people started getting laid off," she said.

That left Torok considering filing for bankruptcy — a step about 200 people are taking each day, said Brad Bolton, clerk of the U.S. Bankruptcy Court in Denver.

It is a number that has been steadily rising since 2007, Bolton said.

Torok turned to state assistance and food stamps and now is trying to survive by selling nutritional supplements because working for herself is easier than finding a job.

"Nobody wants to hire a 62-year-old," she said. "The economy is killing everybody. I don't know that it can be fixed."

And so the Aurora resident was one of two dozen people considering Chapter 7 bankruptcy at a free clinic this month at the U.S. Bankruptcy Court, 721 19th St.

The clinic takes place the second Tuesday of each month from 1:30 to 3 p.m. It is sponsored by the Colorado Bar Association for people seeking help on how to file for bankruptcy without hiring an attorney.

In the past few years, the numbers of people attending each clinic has grown from a handful to more than 40 people, said Meghan Bush, program coordinator for the Colorado Bar Association.

Many attendees show up desperate for help and full of questions about what they can do to fix their financial mess.

Deanna Rasmussen, a Colorado Springs resident, said she has $30,000 in credit-card debt from medical bills she incurred after a fall at work. The nuclear-medicine technologist said things got worse when her work hours got cut because of the recession.

"They come in thinking they can be arrested," said Lea Giarrusso, a lawyer who volunteers to teach the clinic. "They come in riddled with guilt, and they are overstressed."

Although filing a bankruptcy on one's own is possible, it is not easy without the help of a lawyer, said Ted Taggart, another lawyer who volunteers at the clinic.

Taggart said he understands the cost of hiring an attorney can be unbearable for people who are already broke.

The lowest attorney fee he charges is $1,100, but true fees are closer to $2,500.

Torok hasn't decided yet on whether she will file for bankruptcy but seems confident she can do the paperwork without a lawyer.

"If I keep plugging away, I will come out A-OK," she said.

Felisa Cardona: 303-954-1219 or fcardona@denverpost.com

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