What Are The Positive Factors Involved In Personal Bankruptcy Filing

Personal bankruptcy is the process of legally declaring the inability of an individual to pay off his debts. In many cases, bankruptcy might not be the only option available to you for dealing with your financial difficulties. Consulting an experienced attorney can help you gain awareness regarding your rights and available options. However, in case it is the only option available, it is important to maintain a positive approach towards it. Despite all the conventional negativisms associated with the concept of bankruptcy, it is important to know that there are several positive aspects involved in it:

  • In spite of the fact that bankruptcy can impact your credit record severely, it is also true that once the entire process in complete, all your past credit records get cleared, providing you a chance to start afresh.
  • As soon as your personal bankruptcy filing is accepted by the court, and your bankrupt status is confirmed, the creditors are legally bound to stop making direct calls to you. To get an instant relief from the harassment’s caused to by the lenders is probably one of the most positive parts of bankruptcy filing.
  • Nothing can stop you from filing for personal bankruptcy more than once if you want to and need to. However, in some forms of bankruptcy, there is a need to maintain a particular period of time between two filings. For example, while chapter 13 bankruptcy can be filed as often as you need, there’s a need to maintain a period of eight years between two successive filings for chapter 7 bankruptcy.
  • It is not necessarily true that you would lose all your assets if you file for personal bankruptcy. Instead, there are provisions in the bankruptcy laws that enable you to retain certain valuable assets and also get the advantage of easy repayment plans in accordance with your conveniences and requirements.

In case you decide to file for personal bankruptcy, it is important to make a choice between chapter 7 bankruptcy and chapter 13 bankruptcy. Again, a knowledgeable attorney can help immensely in making the right choice with regard to your financial status, conveniences and needs.

Chapter 7 bankruptcy is ideal for individuals having non-exempt assets that can be liquidated by the court in order to pay off the debt amount. However, it has been seen that merely 5% of the people opting for chapter 7 bankruptcy possesses any non-exempt assets.

Chapter 13 bankruptcy on the other hand is suitable for people who in spite of their financial crisis are having a fixed annual income. Such individuals can enter an easy repayment plan through negotiation with the lenders, which can also often bring down the debt amount to be paid. Debtors can then pay back the credit amount over a fixed period of time which actually helps them immensely.

An experienced and knowledgeable attorney is your best source to obtain sufficient information on personal bankruptcy, its advantages and flaws, and the right option for you. It is extremely important to know in details your legal rights, liabilities and options before you decide for bankruptcy filing.

Number One Reason to File Bankruptcy Is Not Creditors, But Protecting Your Stuff

Nowadays, you would really have to be an idiot to believe that the economy has turned around and things are getting better. When looking around and talking to friends there is no one I know who can testify that things are better for them than they were seven years ago. Although, it’s not a topic that people like to discuss. It’s almost like the normalcy bias has affected everyone in the United States and to go against the mainstream media makes you a conspiracy theory nut. I’m not afraid to say it, the economy sucks and doesn’t appear to be getting any better for me and my family. I suppose if you are heavily invested in the stock market you might be doing okay but even that is rolling the dice with the family farm. The dinosaur mainstream media continues to overwhelm the masses with nonsense that is otherwise known as the normalcy bias. In this case, it causes people to underestimate both the possibility of a financial disaster occurring and its possible effects. There is this idea that since they have never experienced it before, it will never happen in the future or a least their lifetime. This is why so many people on the verge of filing bankruptcy continue to leverage themselves into oblivion. Thanks to the too big to fail banks and quantitative easing that is allowing these guys to continue loaning money to people who can’t afford to pay it back.

It’s always been said that history repeats itself and it’s happening right now right before our eyes. All we need to do is make people aware of what’s really going on so their eyes will be opened to this financial disaster that is about to happen. Many Americans are now using credit cards and payday loans just to make their ends meet. They are essentially kiting themselves into bankruptcy and don’t even know it. It would be much better for this group to file bankruptcy and stop all the craziness. This idea of protecting your credit is really meaningless when at some point in time the inevitable is going to happen. Just like you tell your kids when they fall down and get hurt, when it’s time for the Band-Aid to come off, it’s much easier to rip it off then to pull slowly. Because of normalcy bias many are hoping that some miracle will happen and their situation will instantaneously turn around. With the Fed printing all the money or quantitative easy over the last five years it’s just a matter of time before hyperinflation comes to our shores. At this time, everyone in the US will get a reality check and for those that did nothing to prepare will most likely be wiped out. It’s time to stop worrying about what the creditor will think about you if you file bankruptcy and do what’s best to protect any assets you have left.

Some people say that the number one reason to file for bankruptcy is to get creditors off your back, but the only reason you want them off your back is to make sure they don’t take your stuff. This is why it’s best to be proactive when it comes to financial matters and not let creditors be allowed to file lawsuits and attach any property. Creditors these days have gotten very aggressive in their collection tactics and sometimes need to be stopped. Filing Chapter 7 bankruptcy uses the power of the automatic stay to stop creditors in their tracks. The Automatic stay is so powerful it not only stops collection activity but also stops all legal activity against the debtor. The stay will stop foreclosure, lawsuits, judgments, and even wage garnishments. The creditors can’t even contact the debtor by phone, e-mail, or even a nasty letter. If they have something to say, they will have to do it through the bankruptcy lawyer.

That’s why the real reason for filing bankruptcy is to protect one’s property. When Congress created the bankruptcy code, they wanted to make sure that Americans would truly get a fresh start after the bankruptcy discharge. That’s why they included bankruptcy exemption laws for those who file for bankruptcy. The debtor has the choice of using the federal bankruptcy exemptions or they can use state exemptions for where they are residing and filing. For individuals to get a fresh start, the exemptions are really pretty generous for individuals filing for bankruptcy. If the bankruptcy trustee could take away all of the family’s property to pay back debts, it would be hard for that family to get back on their feet.