Use a Bankruptcy Filing To Eliminate Monster Debt

Use a Bankruptcy Filing To Eliminate Monster Debt "In recent years, many Americans have concluded that, barring a lottery victory, it will be nearly impossible to ever pay off the debt they incurred during the previous decade. Historically, when people consider bankruptcy, Chapter 7 comes to mind. This is due to the fact that Chapter 7 bankruptcy has no repayment requirements and eliminates the debt with the bankruptcy discharge. Historically, bankruptcy was associated with failure or dishonesty. Many individuals believed that those who did not pay their debts were either poor or dishonest. No one could have predicted what occurred in 2007 when the real estate bubble burst and the financial markets came dangerously near to collapsing. In the aftermath of this event, applying for bankruptcy no longer carried the stigma it once did.Many experts believe that the credit industry is responsible for the stigma attached to those who file for bankruptcy. Creditors and debt collection agencies spend a great deal of time discrediting the reasons for filing for bankruptcy. They are aware that if a person consults a bankruptcy attorney and determines to file for Chapter 7 bankruptcy, they will receive nothing in the end. To continue receiving payments from individuals, they therefore lie and deceive debtors.Currently, the United States is experiencing a debt crisis. Not only does the financial crisis affect the government, but it also affects consumers nationwide. At the end of 2011, the average American had $16,000 in credit card debt. I'm certain that number is now much higher, but the updated statistics have not yet been disclosed. People must safeguard their current assets, and if that means pursuing Chapter 7 bankruptcy, so be it.When contemplating Chapter 7 bankruptcy, a person must evaluate the advantages and disadvantages of their current situation. Creditors assert that Chapter 7 will ruin an individual's credit. The truth is that it does leave a scarlet B on one's credit report, but given the current state of this individual's credit, it probably won't do much more damage. Since the credit report is based on ability to pay and debt ratios, the discharge of all debt will improve the credit of some individuals. The notion that a person who has filed for bankruptcy will never obtain credit again is absurd. Creditors are opportunists who recognize that many individuals who have filed for bankruptcy are essentially debt-free. As long as they maintain employment, creditors view them as a relatively low-risk investment. A person should delay a few years before applying for credit in order to qualify for better interest rates and lower fees.Since the modifications to the bankruptcy code, Chapter 7 has become significantly more complicated and should be filed with the assistance of a bankruptcy attorney. Those who complain about the cost of filing should examine the quantity of debt that will be discharged in bankruptcy and compare it to the cost of a bankruptcy attorney and filing fees; the value will become immediately apparent. During these difficult economic times, Americans must be proactive and not conceal their heads in the sand when it comes to financial matters. Employment and investment returns are no longer assured, so individuals should base their financial decisions on the present rather than on speculation.
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