The United States of America is facing a vulnerable stage both in politics and banking sectors.
The economic structure of this nation was at the edge in 2007. After the election in 2008, the total policies are changing a in a positive way. But still there are some who are filing bankruptcy due to their financial instability. The rate of filing bankruptcy is rising day by day. But the question remains always the same. Only low income cannot bring much reactionary movement for a total country. There must be some other reason of this uprising. In this article we are going to find out some more information about bankruptcy and its catalysts.
Having trouble paying your bills? You are not alone. Many people are late in paying at some point in their life. Do not worry … having debt is not a crime and you can not be imprisoned.
You may be thinking that the answer to your problems is to file for bankruptcy. But it is not convenient for everyone – it depends on the individual situation. For some people it is the best option, but for others it is not. Bankruptcy filing (also called bankruptcy) is a legal process that eliminates certain debts and gives you a chance to start over.
But it does not eliminate all debts. You will still have to pay for child support, spousal support, unpaid taxes, and other accounts, such as student loans. You can not eliminate a mortgage debt on your home by filing for bankruptcy.
Should I declare bankruptcy?
Bankruptcy filing is an important step, and it is not the best option for all people. This booklet has information about who is protected. You may not have to file for bankruptcy because you are already protected. If you are considering filing for bankruptcy, talk to an attorney to find out what your options are.
Do I have to file for bankruptcy?
If your income is very low and you do not have many assets, you may not have to file for bankruptcy. Why? It is likely that your creditors can not collect money because you are already protected (that is, you have no money or property that the collector can legally take).
So the first thing you need to find out is, “Are you already protected?” You may hear the term “fail safe,” which is a legal term meaning that you are protected even if the court has given an opinion (ruling) saying That owes money to someone.
When we are talking about a developed nation, the poverty level is much important to count. And this is really sad that the poverty level of America is judged when someone’s annual income is 24 thousand dollars, which is counted as a high income in some other nations.
The per capita of the United States of America is going under a revolutionary change.
The statistics bureau has found something more interesting. About fifty-one million households are in need of food stamp. Now you may ask why these are in the discussion. Well, the bankruptcy is filed when someone has nothing left to pay the loans and credits. And of course the luxurious habit of American citizen is playing a vital role behind this disaster. There is no economic recovery totally since 2007.
The code for filing bankruptcy has gone under a change.
The seventh chapter of the code has made it easy for the clients to get rid of the loan by filing himself or herself as a bankrupt. When you have nothing to pay, the governing board of the bank will take care of your belongings. The debts are sometimes higher than the value of the property.
Filing bankruptcy is for people in every sphere of income levels. A rich can be bankrupt just for uncontrolled spending. On the other hand, to fulfill the basic needs, a poor and a medium level person can lend money from the bank. The income is not related to be bankrupt. It is the weak economic structure of the nation. In our childhood, we heard that not to believe what you hear. So, make it your motto and find the best option to avoid the burden of debt and loans.
How does the fact of being fail-safe protect me?
Fail safe means your creditors can not charge you money. You can be tried, but you will not have to pay while your situation stays the same. But if you change (for example, go back to work and earn enough money), you may have to pay the debt. This type of judgment can be valid for 10 to 20 years.
Note: A judgment is a court order. If the creditor wins the case, the judgment will say that you owe the creditor a certain amount of money. The ruling does not require you to pay. A court can make a judgment against you even if you are fail-safe, but creditors will not be able to charge you the money.
How can a creditor charge me money?
Until a creditor sues you and wins you, the only way to charge is by asking you to pay. They can call you and send you letters, but once the creditor judges you and wins (you get a judgment), the creditor has three ways to try to collect the money:
Take money from your salary,
Take your goods,
Take money from a bank account.
But if you are protected (fail-safe), the creditor can not do any of these three things.
Are there times when I should file for bankruptcy?
You may want to consider filing for bankruptcy if:
Your income or assets change (because creditors can take something).
He is too worried and nervous about his debts.
You are about to get a job and creditors could take money from your paycheck.
How can bankruptcy help me?
You may be able to:
Eliminate certain debts. They are legally deleted (they are “released”) so you will not have to pay them.
Stop the collection calls.
Stop most of your pay embargoes (money that your creditors get out of your salary).
Stay with the wages, money or assets you get in the future.
Continue to receive public services (electricity, water, etc.), either reconnect them or prevent them from interrupting them (if it was because they did not pay their bills).
Stop foreclosure of your home (for certain types of bankruptcy).