I am often asked to explain attorney’s fees and the costs associated with bankruptcy; one way to view bankruptcy is as an investment and look at the Return on Investment (ROI). For example, for an investment of $2,700 in attorney fees in bankruptcy to discharge $50,000 in debt, the ROI is 1,752% in as little as four months time. No kidding, even I was amazed by the numbers when you really think about bankruptcy in an ROI context (note, for this blog piece, I am only looking at ROI, the model can get fairly sophisticated, and hence more difficult to explain, when bringing in extrinsic risk factors). (more…)