Just about every economist in the world has admitted that the economy is not getting better anytime in the near future. Over the last couple years, the government has spent trillions of dollars to fend off the oncoming recession. What they refuse to admit was the economy was already in recession and heading towards a depression. A few years ago, most politicians were praising the decision to bail out the banks and to approve the stimulus bill. The only thing that happened from all this was deeper debt and bigger banks. Now if they fail the entire economy will collapse globally. It's really no surprise that the number of people filing bankruptcy continues to stay about the 1.5 million mark per year. Added to this there is a continuous drain on the real estate market as prices continue to slide down the slippery slope causing many more to lose their home to foreclosure. Most Americans try to be optimistic and have done everything they can to avoid filing bankruptcy. Most people feel strongly that they are doing the right thing by making good their obligations to their creditors. The only thing is these folks might end up in Chapter 7 bankruptcy anyways.
Consumer Bankruptcy, File Bankruptcy, Bankruptcy Attorney Columbia Sc,
The group of Americans that is continuing to hold onto hope that the economy will soon return to its glory days, might need to take off the rose-colored glasses and take a realistic view to what's really going on. In today's market, one cannot really count on the stock market or the real estate market to rebound and dig someone out of a hole. Realistically, the days of the Internet stocks doubling overnight and house prices going up 50% per year are gone. There is just no money to substantiate the economy we have created. Combine that with much talk of the US no longer being used for the petrodollar and we have a cocktail for disaster. Many of these folks have been kicking the can down the road to avoid filing bankruptcy by borrowing from their 401(k) thinking they will just put it back in when everything comes back. Two things happened here, first of all, if for some reason the person can't pay it back they will put themselves in a taxable situation where they will be taxed on that amount. Next, if they end up filing bankruptcy, the bankruptcy court will look at the money taken out as income and possibly make the person not qualified to file Chapter 7 bankruptcy. Another mistake people do to avoid a bankruptcy filing is refinance their house to take out equity to pay credit card bills. In this case, they have just sucked out any equity they might have in their home that would be protected by bankruptcy exemption laws. On top of this, the credit card debt would be wiped out in a Chapter 7 bankruptcy.
Other mistakes made are borrowing from friends and relatives that many times will destroy the relationship if things continue to go south. Another faux pas for a wage earner employee is to raise your deductions so you have more income to take home every week. While you might be able to pay down your debt, you might have created a problem with the IRS. I would rather take my chances with the creditors than the IRS.
Before taking money out of your home equity or 401(k), it's best to consult a bankruptcy attorney to see if bankruptcy filing might be a better option. Some people burn through all their assets only to find out that they need to file for bankruptcy anyways. Now they've lost everything they own that would've been protected by bankruptcy exemption laws and still had to file for bankruptcy.
Is Bankruptcy Right For You? Talk to Bankruptcy Attorneys Free and Confidential. Licensed bankruptcy attorneys are available. Attorneys will call you to discuss your case for free. Find out if bankruptcy is right for your situation.
Rating of Bankruptcy Credit Counseling
Get Online Application at online Bankruptcy Lawyer.
0 comments:
Post a Comment