Only Losers Are Filing Bankruptcy Is Far From the Truth

Only Losers Are Filing Bankruptcy Is Far From the Truth "In the past, declaring bankruptcy was stigmatized and associated with failure and being a scofflaw. This is contrary to reality. The majority of Americans who file for bankruptcy today are good, hardworking individuals who were caught in an exploding credit debt bomb. Many individuals believed that if they did not purchase a home immediately, they would never be able to afford one. On the basis of a dog's declared income, creditors would grant a loan. No wonder these individuals are facing alarming rates of bankruptcy and foreclosure.Numerous experts believe that the credit industry created the stigma. It was primarily disseminated by those involved in debt collection. They realized that if they could make people feel terrible about themselves, they could convince them to continue making payments with money they didn't have in order to avoid bankruptcy and the stigma of being a failure. There are numerous accounts of debt collection agencies using threats and falsehoods to obtain payment from individuals. First, they attempt to befriend the individual and act as if they are attempting to help because they comprehend their situation. This is the initial fib. They could care less about the individual being evicted with their children; all they care about is receiving payment. Debt collectors are compensated based on a percentage of what they collect, so the more they collect from a debtor, the more money they earn. When an honest individual must choose between buying food and paying a bill, it is unfortunate that they are coerced into not eating. If the debt collector was a friend who truly understood the situation, they would check in a week or a month to see if the debtor's financial circumstances had improved. Some debt collectors have gone so far as to threaten a debtor with imprisonment for nonpayment. Typically, this occurs after the companionship phase has ended. This is a complete fabrication, as debtor's prison no longer exists.In conclusion, the majority of individuals were unaware that the gravy train would derail at some moment. The majority of families believed that housing costs would continue to rise alongside their incomes. In 2007, when the banks confessed failure, all bets were off. Since then, numerous corporations have filed for bankruptcy in order to renegotiate employment contracts, debt with their vendors, etc. Bankruptcy should be viewed in the same manner by the average person as it is by corporations and large businesses: as a means of achieving financial stability.Now that the damage has been done, people must get their lives back on track and, if necessary, file for bankruptcy without fear. When expenses exceed income, it is time to consult a bankruptcy attorney to determine if anything can be done. Chapter 7 bankruptcy is the best option for those with substantial amounts of unsecured debt and can be concluded in as little as four to six months. Chapter 13 bankruptcy, on the other hand, is the greatest option for protecting a family home from foreclosure. Chapter 13 requires the individual and their bankruptcy attorney to submit to the bankruptcy court a feasible repayment plan that will last between three and five years. Due to the increased complexity of the bankruptcy laws, it is preferable and simpler to hire a bankruptcy attorney.
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