A number of factors are thought to be responsible for the steady rise in the rate of personal Bankruptcy filings in recent months. The September peak of 3541 filing per day is a call for concern to many rights thinking people. The numbers of filing recorded in the months following October 2005, seems to mean that the new law is the panacea all of us needed. Well, as we can see today, that is not to be. In fact, it seems that owing to some factor, the rate of filing will continue to climb at least into the foreseeable future.
Natural disasters.
As people around the world live in fear of ever increasing incidents natural disasters, many would still file for personal bankruptcy as a direct consequence of lost of possession during emergency. Despite the existence of levees and pumps, the disaster that many had feared finally occurred in 2005 when hurricane Katrina stuck. “Long standing warnings” were either ignored or “met with half-hearted response,” said a report in USA Today. That’s talking about the city of New Orleans, Louisiana, USA. It so devastated the city that it takes billions of dollars to bring relief to victims. Despite government’s concerted effort to support victims, many households may still result to filing for bankruptcy due to non-indemnify losses. A couple of months later, hurricane Rita also struck. Hurricanes Rita may not have enjoy much publicity because a lot of people heed the warning and fled the trouble zone. Thus, human casualties were minimal. However, this did not minimized damages to belongings that cannot be transported in a “go bag.” Over the years, a host of other natural occurrences turned disasters had took it toll on people, resulting in enormous damage to businesses, properties and people’s means of livelihoods.
Many are already feeling the effect of these disasters. But the full consequences will yet be experience in the nearest future. The many that lost means of livelihood are most likely to face difficulties in paying mortgage loans, keep up with interest payment on credit card, and medical expenses. These ultimately will lead many to result to filing for personal bankruptcy in the years to come
Natural disaster can cause a lot of havoc on the human society. Some times it’s unimaginable. However, preparedness and heeding warnings, both official and natural warnings can alleviate suffering. Responding to warnings at the appropriate time can help in moving some valuables from the troubled area. Thus, how we respond to warnings is more important than how we will cope with natural disasters.
High interest rate
Credit card companies are now putting back credit into the hand of individuals they once vilified. “We don’t care about your credit score.” “With bad credit you are qualified, good credit will be rewarded.” “You are guaranteed $7500 credit line in 5 minutes” has become the gimmick many finance company adopts to entice unsuspecting members of the public. If it’s true that most filers were bad debtors who deliberately refused to pay, as claimed by financed companies, what assurance do we have that they would the new debt? It would be recalled that prior to the enforcement of the new bankruptcy law in the United States, many credit card companies went to the senate saying, America runs the risk of being ruin by bad debtors. Interest rate on credit card is on the increasing side and those once declared bankrupt faces additional risk. Then going bankrupt again is not foreclosed.
Mass layoffs.
As companies in the building and transportation equipments industries struggles to survive in a saturated market, cutting down on cost is not an option. Reducing the number of employee on their payroll has been the route many takes to achieve reduction in cost. Disengaged employees are really in for a hard time in face of surging cost of living. High transportation cost, rising medical bill makes heath insurance inevitable.
These and many more jostles for the meager income of a disengaged family head. Not to be overlooked are mortgage and car loan. In an era of mass job loss, it is only reasonable to expect more to file for personal bankruptcy. Are we saying this to scare or put fear in you? In no way! To be forewarned is to be fore armed they say. The purpose therefore, is to help you be on guard. How can you do this?
Showing posts with label Bankruptcy. Show all posts
Showing posts with label Bankruptcy. Show all posts
Monday, November 19, 2007
Why You Shuold Seek Alternative To Personal Bankruptcy
preliminary report by the administrative office of the U.S. courts shows that a number of Americans are “climbing” the bankruptcy ladder during the month of September 2007. The September report represents a new peak in the post-reformed bankruptcy law. It aptly reminds us of the word o f former U.S. senator, who once said “America is in the midst of bankruptcy crisis.” This is the reality today. Then, the question is not why do they go bankrupt? That would only not solve the problem but only leave some more dejected and resign to failure. The question should be what options and alternatives to personal bankruptcy are available? Is there any of such? Yes there is! There are alternatives to personal bankruptcy and they are readily available to any wiling individual. It suffices to note at this point that this article does not in any way constitute a legal advice. Thus, why you seek alternative to personal bankruptcy?
Bankruptcy does not erase all debt.
It’s no longer “business as usual,” but you can reduce your debt by 60% if you embrace the negotiation approach. Before October 2005, the process of filing bankruptcy was relatively easy, fast and an individual could easily discharge his debt obligations. Lawyers’ ads were: “get out of debt easily and quickly” The reformed bankruptcy law however, laid much emphasis on repaying creditors. Thus in cast of (chapter 7) bankruptcy, which happens to be the most common one, you may have to surrender valuable items to the courts for the good of your creditors. Bank account, jewelries, pleasure boat, stock investment and other non-exempt items
To avoid this fate, it is strongly recommended that an insolvent should consult professional debt negotiator. And, if your situation qualifies you for that benefits, you may have debt reduce by up to 60% in no time. This negotiator consults with your creditors and presents them with your plan to pay the remaining amount, depending on the percentage they are willing to reduce. Most creditors welcome this approach because; they realize that if you file for bankruptcy they may loose all you owe them. In addition, when a consumer files for bankruptcy, creditor can only collect any amount due to them at extra cost. In most cases, they will have to use a number of collection methods, and spend a proportion of what is due them on legal services. Therefore, foresighted creditors always welcome negotiation. Through this process they can collect the remaining one easily and quickly at no additional cost.
One reason why you should use debt negotiators instead of going it yourself is that negotiators sometimes represent thousands of consumers with total debt running into the billions. Owing to this fact creditors always find their proposal irresistible. They are well aware of how much they can recover by acceding to negotiator’s request. Thus, through negotiation, you can discharge your debt legally. No loan, no personal bankruptcy!
Bankruptcy may cling to you for a lifetime
Another reason why you should seek alternative to personal bankruptcy is that bankruptcy may blemish your financial profiles for a lifetime. In the process of filling application for credit, are you not often asked if you have ever filed for personal bankruptcy? Why do they ask? And how would you answer? Can you escape the fact perhaps by giving the wrong answer? Be careful! That would be a very serious federal offense. In fact, bankruptcy ruin you financially because impact negatively on your credit rating for a very long time. In some cases, it may take up to two decades to erase.
All indicators point to alternatives to personal bankruptcy as the best choice. If you are declared bankrupt today, are you sure you will not find yourself in the same situation tomorrow? How many times do you think you can file bankruptcy in a lifetime? Besides the fact that law of the United States backs bankruptcy, it has serious effects on others. Bankruptcy also involves moral uprightness. Why? At the point of purchase, mortgage loan application, car loan application, and credit cards application the consensus is that I will pay. Suffice to say that this is personal opinion, and in no way a generalization. The most important reason why you should seek means to pay off your debts is the moral obligation involve. That is my strongest reason. What about you? Seeking the available alternatives to bankruptcy demonstrates integrity, fidelity and love.
Bankruptcy does not erase all debt.
It’s no longer “business as usual,” but you can reduce your debt by 60% if you embrace the negotiation approach. Before October 2005, the process of filing bankruptcy was relatively easy, fast and an individual could easily discharge his debt obligations. Lawyers’ ads were: “get out of debt easily and quickly” The reformed bankruptcy law however, laid much emphasis on repaying creditors. Thus in cast of (chapter 7) bankruptcy, which happens to be the most common one, you may have to surrender valuable items to the courts for the good of your creditors. Bank account, jewelries, pleasure boat, stock investment and other non-exempt items
To avoid this fate, it is strongly recommended that an insolvent should consult professional debt negotiator. And, if your situation qualifies you for that benefits, you may have debt reduce by up to 60% in no time. This negotiator consults with your creditors and presents them with your plan to pay the remaining amount, depending on the percentage they are willing to reduce. Most creditors welcome this approach because; they realize that if you file for bankruptcy they may loose all you owe them. In addition, when a consumer files for bankruptcy, creditor can only collect any amount due to them at extra cost. In most cases, they will have to use a number of collection methods, and spend a proportion of what is due them on legal services. Therefore, foresighted creditors always welcome negotiation. Through this process they can collect the remaining one easily and quickly at no additional cost.
One reason why you should use debt negotiators instead of going it yourself is that negotiators sometimes represent thousands of consumers with total debt running into the billions. Owing to this fact creditors always find their proposal irresistible. They are well aware of how much they can recover by acceding to negotiator’s request. Thus, through negotiation, you can discharge your debt legally. No loan, no personal bankruptcy!
Bankruptcy may cling to you for a lifetime
Another reason why you should seek alternative to personal bankruptcy is that bankruptcy may blemish your financial profiles for a lifetime. In the process of filling application for credit, are you not often asked if you have ever filed for personal bankruptcy? Why do they ask? And how would you answer? Can you escape the fact perhaps by giving the wrong answer? Be careful! That would be a very serious federal offense. In fact, bankruptcy ruin you financially because impact negatively on your credit rating for a very long time. In some cases, it may take up to two decades to erase.
All indicators point to alternatives to personal bankruptcy as the best choice. If you are declared bankrupt today, are you sure you will not find yourself in the same situation tomorrow? How many times do you think you can file bankruptcy in a lifetime? Besides the fact that law of the United States backs bankruptcy, it has serious effects on others. Bankruptcy also involves moral uprightness. Why? At the point of purchase, mortgage loan application, car loan application, and credit cards application the consensus is that I will pay. Suffice to say that this is personal opinion, and in no way a generalization. The most important reason why you should seek means to pay off your debts is the moral obligation involve. That is my strongest reason. What about you? Seeking the available alternatives to bankruptcy demonstrates integrity, fidelity and love.
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