Personal Bankruptcy

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Personal Bankruptcy Good or bad

Personal Bankruptcy is a question that haunts a great many customers today. Why does this haunt so many customers in todays economy? Simply because, consumer debt is now on the highest level that it has ever been in the usa economy and very possibly the planet.

The largest debt for the present day consumer comes from home loans and automobile financial loans (of course this is known as guaranteed debt). The second maximum contributer to consumer debt is unsecured debt. In all fact the use of credit cards, by the consumers, are the major reason for the unsecured debt problem in the United States of America and through out the world.

How can unsecured debt be the ultimate driver, into that headache of deciding, if a declaration of insolvency is the only way out. Recent surveys and studies show that many, of the major credit card organizations, have designed their particular system to actually ‘enslave’ the buyer into their indefinite potential.
One of the most successful parts of this particular strategy is to give the consumer the ability to make minimum payments. Once the consumer does this just a very small percentage of the particular payment goes towards the principal of the loan and the balance is used for the interest. At this point, the buyer, taking advantage of the bare minimum payment, has just positioned themselves, into the constant cycle of increasing debt on a monthly basis.

Once the buyer succumbs, to the minimum repayment strategy, they are inserting the family one step nearer to individual debt bankruptcy. As this debt increases, from the credit card companies, life goes on and unexpected situations arise. These types of situations can come coming from employment loss (through either spouse) or the individual. Then unforeseen illness that can quickly amount to thousands of dollars health-related bills. In addition the illness may result in the debtor being unable to work for a good indeterminate or even permanently getting disabled. Indeed just a few of life’s unexpected concrete realities.

Once some of life is unexpected emergency’s occur as well as unsecured debt and safe debt has become completely unmanageable, then perhaps the actual debtor must face that nightmare selection, of filing for individual bankruptcy.

Comments: 23

  1. Erasmo March 7, 2013 at 11:11 am Reply

    I claimed personal bankruptcy for the first time last August. I am living in Montreal, Quebec. I had to make high payments because I had surplus income at the time. My trustee told me that the bankruptcy would be 21 months, but after 7 months, I would be re-evaluated with a possibility to shorten the bankruptcy to 9 months if my income situation changed. I lost my job in December, and advised my trustee immediately, but have not received any response. They continue to try to deposit my payments, but I have been calling the bank to make a stop payment every month. I cannot afford to make the payment they want from me.

    It is coming to my 7th month, and I still cannot reach the trustee. I wanted to know what will happen now that I haven’t been making the payments? Also, does Employment Insurance count as income (for when they evaluate me for surplus income)?

  2. Emanuel June 12, 2013 at 8:55 am Reply

    My business closed and I am basically forced into filing personal bankruptcy. If I die before I get the final discharge from the court can the bank claim part of the life insurance instead of my wife getting it all? My questions boils down to, do I need some extra insurance until the bankruptcy is final later this year?

  3. Marcelene June 18, 2013 at 9:49 pm Reply

    I plan on filing Chapter 7 personal bankruptcy by the end of the year. Will my discharged debts result in a tax liability for 2009? Is this even an issue with bankruptcy?

  4. Graham October 12, 2013 at 5:07 pm Reply

    I lost my job about 2 years ago and have not found another work. I have several bills, have depleted my savings, and need to file a personal bankruptcy. How much will it cost me?

  5. Vivian October 26, 2013 at 7:51 pm Reply

    For personal bankruptcy.

    From filling out the paperwork, to the bankruptcy being finalized, what is the average length of time that this takes?

    I do know that the time span can very case-to-case.

    So if you can give me your best AVERAGE time estimate, I would really appreciate it.


  6. Adeline October 27, 2013 at 3:24 pm Reply

    I realize legal fees for personal bankruptcy are not tax deductible. My husband runs a business as a sole proprietor, and some business expenses are included in our Chapter 13 filing. Would the business portion of the legal fees be tax deductible as a business expense? Thank you.

  7. Delmar October 29, 2013 at 3:59 am Reply

    when you file a personal bankruptcy can you pick certain debts to include in the bankruptcy or do all of your personal debts have to be included? Also what happens with your credit score (how big of a hit does it take)

  8. Kurt November 1, 2013 at 10:35 am Reply

    My parents’ house is paid for and my three sisters and I are selling it, since we inherited it when my parents died. One of my sisters had to take personal bankruptcy and listed her part of the house as an asset. We have an offer on the house and are wondering if the bankruptcy will effect the closing on the house in any way. The buyers want to close in four weeks.

  9. Renay November 1, 2013 at 2:56 pm Reply

    my business and business partner? Is it a totally separate issue from my business? And is there a need to tell my business partner that I’m filing for personal bankruptcy?

  10. Irwin November 24, 2013 at 11:21 pm Reply

    I’m planning to file for personal bankruptcy and none of the law firms will quote me a price on what the cost will be. Could anyone please inform me of a good bankruptcy lawyer available at the lowest price available. Thanks

  11. Cristopher December 7, 2013 at 11:03 pm Reply

    I gave my Lawyer $1,250.00 deposit for my personal bankruptcy and $1,750.00 for my business bankruptcy I gave him everything he asked for with in one day or less. I got a case number for my personal after 13 months then it was dismissed in less the one month later do to him not filing a few documents. This has been going on for 16 months I now have several liens on my house.

  12. Delisa December 20, 2013 at 7:55 am Reply

    Are we living in the best place (USA) at the best time (they’re still soliciting me to accept credit cards!!), or what? How long does personal bankruptcy last, and is it only then that I should be looking at to begin rebuilding my credit history?
    I’m liking not using the cards, tho’ . . .

  13. Irwin December 27, 2013 at 8:29 pm Reply

    Dr. Scott Ramsey authored a study that examined a cancer diagnosis as a risk for personal bankruptcy. Using cancer registries and bankruptcy records in Washington state, he found that a diagnosis of lung cancer had the highest risk of bankruptcy — 8 percent versus 0.3 percent in the general population in the same geographic area. (Article – Reuters – 6/6/11 – by Debra Sherman – Cancer costs put treatments out of reach for many)

  14. Delmer February 17, 2014 at 1:08 am Reply

    What are the steps I need to take before I file. Paying back the credit card debt is not an option. I know I have to wait 180 days or so to be a resident. Do I need to go to credit counciling before I file?
    i never mentioned property, I rent I have to move up north because of family emergency.

  15. Beau February 22, 2014 at 12:33 am Reply

    how to file bankruptcy

  16. Bradly February 22, 2014 at 12:51 am Reply

    My wife owes 15000 dollars to bank visa card.We are disabled and property [ land with cabin ] is on my name.She like to declare bankruptcy. Will that effect land with cabin i own and what is going to cost her.We live in Canada, we have no other assets and she never claimed bankruptcy before.What else would be involved ?

  17. Gregg February 22, 2014 at 7:05 am Reply

    If I file a personal bankruptcy and I have a small share in a corporation, can a trustee get into the Corp ?

  18. Angelic February 25, 2014 at 3:29 am Reply

    Does anyone know of any lending or finance companies that are post Chapter 7 bankruptcy friendly and are not payday lenders?

    Any help would be appreciated.

  19. Orlando March 13, 2014 at 11:11 pm Reply

    Experienced people please tell me if my mothers house is in jeopardy if I file Chapter 7. The loan is in my name but I deeded it to her 10 years ago. Equity is 198,000 in Nevada. Thank you

  20. Willard March 13, 2014 at 11:11 pm Reply

    Own a small retail incorporated business not doing well due to the economy. Having to use business credit cards, and creeping into personal credit cards, they have become overwhelming. Could I declare personal bankruptcy and continue to keep my business open?

  21. Jesica March 22, 2014 at 4:18 pm Reply

    I live on long island , ny and am wondering what does it take to qualify for claiming bankruptcy?I have no problems w/ credit cards it is all way overdue hospital bills w/no hope of pymnt plans it is way past that point, but i owe sooooo much.they currently for the past couple of years garnish my NYS tax return not my salary yet i think bec ause i change jobs i eleiglbe?i just had twins and i can’t even open a bank account i want to start over for my girls and start to be responsible w/my finances. what can i do?

  22. Miguel March 25, 2014 at 4:25 am Reply

    i am looking to file bankruptcy not sure which kind 13,7 or the others but i was wondering if anyone knows if i have to include my husband?? None of the debt i have has his name on anything and he doesnt know about alot of my debt due to me having it before we met and it is embarrasing but if i have to affect him with it i need opinions on other options

  23. Karleen May 25, 2014 at 10:25 am Reply

    As a man about to be divorced the question of financial well being to be able to rent and eat come to mind. However is bankrupty an option? When did it become necessary for you and was it beneficial? How long before you can considered non-bankrupt? Did you need an attorney and if so, approximate cost? IRS position too if you know.

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