In this YouTube segment, Latasha Transrina Kebe and Chad discuss a sharp increase in Chapter 7 bankruptcy filings compared to Chapter 13. Chad attributes the trend to widespread financial strain: stagnant wages, rising living costs, layoffs, and a weakening gig economy where platforms like Uber and Uber Eats generate profit for the companies but leave individual workers earning less. They note that Chapter 7 offers a quick, total discharge of debt, which appeals to people who can no longer afford the repayment plans required by Chapter 13. Chad mentions a record 1,500 bankruptcy consults in January, indicating heightened demand for legal help. An anecdotal case is shared about a client named Shante, who secured a Chapter 7 discharge within three months via a brief Zoom meeting, resulting in immediate debt‑free status and emotional relief. The conversation underscores the growing financial distress among gig workers and the rapid, relief‑focused nature of Chapter 7 bankruptcies.
Why, why are Chapter 7s like rising faster than Chapter 13s? Why?
Because people are broke. Like Chapter 13s are for people that can actually afford to pay something back. And right now we're seeing people are like broke, broke. Like they not, not only is everything more expensive on a monthly basis, wages are stagnant or people are getting laid off. So people are losing their jobs. And what I've noticed recently, you know, this whole gig economy where, where at least people that hustle, that want to hustle could make money and make, make their budget work out. That gig economy is dying and people are making less money from, from the hustling, the, the Uber, the Uber Eats, you know, and Uber's making more money from it, but the individuals are making less. So I'm seeing people that are just getting completely burnt out and saying, you know, I can't do this. So they're filing Chapter 7 instead of 13, because in the 13 you still have that monthly payment for 3 to 5 years. In a 7, you just wipe everything out. So I'm seeing Chapter 7s are up more than Chapter 13s, and Chapter 11s are up significantly. And those are for businesses. Well, I think a lot of this is because the winos know where to find the help. We had 1,500, a record number, 1,500 consults just in January.
So they bought out on Christmas gifts and then called you when they put them on the credit card. Why you, $120,000, really? She ain't gotta pay none of this back, Chad, for real.
Shante is completely discharged, Chapter 7, stressed out as hell coming in, but she heard Tasha K told her to come see me. And I'm telling you, 3 months beginning to end. It was quick. She was easy to work with, got us the documents. Got everything filed. 5-minute meeting. Zoom meeting, by the way. So no in-person appearances.
What?
Done. 3 months. Debt-free. And yeah, she probably has the money now. She has the cash flow to go enjoy the finer things in life.
I know she happy. I just got cheers for her. I know she had that feeling of, I ain't got to pay you, motherfucker.
It's, yeah, it's, it's, it's When people come in and they're stressed out and they're like, life is over, and then they leave, they're like, wait, that's all I got to do? That's it? That's all I got to do and I can live life again? It's incredible. It's an incredible feeling.
