Stop the Debt Vultures From Circling With a Bankruptcy Filing

Stop the Debt Vultures From Circling With a Bankruptcy Filing "In this economy, even debt collectors are experiencing financial hardship. As the debt ratios of Americans rise, you can expect debt collectors to become more aggressive in their attempts to extort every last cent from the debtor before he or she declares bankruptcy. Recent reports indicate that the average American's debt-to-income ratio has surpassed 154%. It must be thrilling for the debt vultures to know that it's only a matter of time before these individuals default on their debts, allowing them to sweep in and feast on the carcass. These debt predators purchase the accounts from creditors who have written off the debt and sold it for pennies on the dollar. Almost everything they receive from an individual on this poor debt is profit.Today, the government announced that the unemployment rate has decreased to 7.7 percent. In addition to this news, the stock market finished the week at 14,397 points, a record high. Why are so many individuals so indebted if the economy is no longer in the doldrums? The media likes to depict this as a recovery and proclaim that the recession has ended. True, the number of Americans filing for bankruptcy decreased in 2012 as well. In 2010, a record number of Americans filed for bankruptcy to prevent foreclosure and eliminate debt. According to the portrayal of the media, the housing market has already begun to recover alongside the stock market. What is not mentioned is the fact that the average American's debt has doubled in the past four years. Consumer debt in the United States is currently $11.34 trillion and rising. In my opinion, quantitative easing is responsible for the decline in the number of individuals filing for bankruptcy. The Federal Reserve has been injecting significant quantities of newly printed money into the economy, allowing banks to lend more money. The only thing that has been produced is an even larger bubble than the one that exploded in 2007.All this debt appears to be good news for these debt vultures, but there is a method for those who are being attacked to stop them. Chapter 7 or Chapter 13 bankruptcy will immediately halt all collection efforts against the debtor. Because bankruptcy utilizes the automatic stay, this is the case. The automatic stay is so effective that it will halt not only collection efforts, but also all unlawful activity, including foreclosure, lawsuits, judgments, and wage garnishments. Numerous of these debt vultures do not play by the rules, necessitating legal action to safeguard oneself. With the rise in consumer debt across the nation, we can anticipate a rise in the number of Americans filing for bankruptcy in the near future.
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