...if General Motors and Donald Trump can do it, why can't I?
Finally, the stigma associated with personal bankruptcy has vanished. The American middle class is finally awakening to the fact that they, too, are entitled to government protection, just like General Motors, Ford, and Chrysler (Congress injected $25 billion to restructure their debt) and Donald Trump (corporations bearing his name have filed for bankruptcy protection four times and he is still worth approximately $2.7 billion). Trump was quoted in Forbes magazine as saying that """"great entrepreneurs"""" have used bankruptcy to restructure debt, free up capital, and improve their enterprises.""Pretty much, I've used the laws of the country to my advantage, as have many others at the top of the business world""
Additional millionaires who have filed for bankruptcy? ...and Walt Disney.
...our customers are middle class
The majority of my bankruptcy clients are middle class families with both spouses working, they own a home or condo, one or both spouses has a bachelor's or master's degree, they have paid for their children's college educations or are currently paying their children's student loans because their children cannot find employment after graduation.
A recent survey characterizes the typical American bankruptcy petitioner as follows:
a household head from the middle class with children and a full-time work.
more educated than the average citizen.
Almost all bankruptcies are the result of catastrophic personal events, such as job loss, divorce, or severe health problems.
homeowners who obtained first and second subprime mortgages through deceit.
senior citizens with extraordinary medical expenses and a limited income.
unemployed or underemployed college graduates with $100,000 in student debt.
By now, everyone understands why the recent economic downturn has impacted the American middle class so severely.
Housing and mortgage debt (primary and secondary mortgages) has reached a record high. The rising costs of health care, heating fuel, and petroleum further strain the budget of the middle class. A college education currently costs over $80,000. The majority of my middle-class clients are already living on the edge, scarcely making ends meet, or supplementing their income with credit cards or 401(k) loans.
According to a recent survey, Americans are now saving at a negative rate (individuals are living off their savings or, even worse, borrowing against their 401(k) or pension).
A family from the middle class that suffers a job loss, divorce, or illness immediately falls into the abyss of debt.
However, is it not immoral to apply for bankruptcy?
Homeowners and individuals in debt frequently believe that filing for bankruptcy and ""cheating"" their creditors is """"wrong"""" or """"immoral."" They believe that registering for bankruptcy will render them morally bankrupt as well.
There are no moral or ethical concerns with filing for bankruptcy, just as there were no moral or ethical concerns with the credit card company or mortgage lender contracts you signed.
Both federal and state laws permit credit card companies and mortgage lenders to modify their interest rates, impose late fees, over-the-limit fees, and impose additional penalties. If you are late with a payment, the law in the United States permits your creditor to use a collection agency to harass you or file a lawsuit against you. If a creditor obtains a judgment against you, the law permits the creditor to suspend your bank account, garnish your wages, repossess your vehicle, and foreclose on your home.
The same United States law also established the U.S. Bankruptcy Code, which permits all eligible debtors (GM, Trump, or you) to eliminate or restructure their debt, halt lawsuits, wage garnishments, foreclosures, and repossessions.
The same U.S. Bankruptcy Code protects up to $1 million in retirement funds, $300,000 in home equity, 1-2 vehicles, and $10,000 in cash. The Bankruptcy Code is known as """"The Fresh Start.""
Why should middle-class American families take a stand and proclaim that they will weather the financial crisis on their own, while the largest corporations and wealthiest Americans utilize government laws to their advantage?
To encourage more business and entrepreneurship, even the European Union and Japan are instituting expansive bankruptcy laws. The new bankruptcy laws permit businesses to take greater risks and receive government protection in the event that these risks fail.
Take it from the wealthiest individuals and corporations in America, not just from me. Filing for bankruptcy is not disgraceful. It is the most prudent economic strategy for achieving financial stability.
Visit my website at http://AllenKolber.com for additional Bankruptcy facts and opportunities.""
" - https://www.affordablecebu.com/
