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Monday February 19th 2018

Some great benefits of Bankruptcy

After the brand new bankruptcy law went into effect in October of 2005, many folks were under the impression that bankruptcy relief was not available or too hard to procure. Nothing may be further from the fact.

Bankruptcy is superb way for hard working those people who are facing difficult times to procure a “fresh start” and rebuild their future. Recently bankruptcy filings are rising at unprecedented rates, as millions of american citizens were faced with the loss of a task, unexpected injuries and persistent medical conditions resulting in insurmountable medical bills, or other circumstances which are beyond their control. Irrespective of the placement, those people who are deep in debt need some relief and filing bankruptcy is still a legal, safe and affordable strategy to start over.

Bankruptcy can happen to anyone. People in every socioeconomic bracket face unexpected challenges in life. Actually, this year that is expected that over 1,500,000 Americans will seek relief under the bankruptcy code and begin to rebuild their future. Filing for bankruptcy doesn’t make you a nasty person, It simply means you’ve had some bad luck. But before you file, it is rather important that allows you to completely assess your situation and ensure that bankruptcy is the good available technique to improve your situation.

There are many immediate advantages to filing relief under the Bankruptcy Code. First, there is the relaxation of the debt itself and the tension regarding the collection of the debt. A bankruptcy case leads to a “Discharge” of your debts. This implies you’re not legally obligated to pay them any more. Debts which might be discharged include, but aren’t limited to, credit cards, medical bills, unsecured loans, judgments, and likely kinds of taxes. In some bankruptcy cases you can reorganize your mortgage and car loans, taxes and others sorts of debts that will not be discharged. The good thing about it really is that the court supervises the plan and the creditors must participate – they aren’t getting a call.

The second major good thing about filing for bankruptcy is the automatic stay. Which means creditors are barred from calling and harassing you so as to collect debt. The automatic stay also halts lawsuits, prevents garnishments,averts repossessions of vehicles, and prevents foreclosures and IRS seizures. Furthermore, if a bankruptcy case is filed before a state court enters a judgment of possession, you can even prevent eviction from a past-due, mortgaged house. You can even prevent your driver’s license from being yanked for any number of unpaid fines.

If you’re seriously considering bankruptcy and you live in California, you desire to discuss with a California bankruptcy lawyer. While the process is complicated, they’ll be capable to will let you understand your options and allow you to avoid making bad decisions that you may later regret. When you are over-burdened with bills and cannot see any light at the tip of the tunnel , bankruptcy would be the most suitable choice that will help you get that much needed fresh start and show you how to rebuild your future.The law offices of Borowitz, Lozano and Clark, LLP specialise in California bankruptcy and exclusively represent debtors in Consumer and Small Business Bankruptcies. They have got helped over 20,000 families get free from the weight of debt since 1997. Call today for a free debt consultation at 1-800-509-3200.

The Two-Income Trap…  ($9)

The mother/daughter team of Elizabeth Warren and Amelia Warren Tyagi have written one scary book. What exactly makes this book so frightening? The fact that many of their conclusions are probably correct.

A friend who happens to be a CPA who counsels families in financial trouble told me about this book. She actually is warning her clients not to read it because it paints a fairly bleak and depressing picture. Naturally, after she told me this, I had to read it, even though she was correct, much of the information contained in it is depressing.

For one thing, in many ways the integration of women into the workplace and the rise of the two income family has not had the positive effect one might have hoped it would. Because so many families are now two income dependent they have become trapped and are more financially vulnerable than previous generations. Many families use all of the income they receive from both husband and wife, and barely get by. As a result, any interruption of the income flow can result in disaster. One telling statistic: today’s two-income family earns 75% more money than its single-income counterpart of a generation ago, but actually has less discretionary income once their fixed monthly bills are paid.

This is generally blamed on overconsumption and claims that we are a credit card generation that it is paying the price for its free spending ways. And no doubt credit spending has its role in the financial problems of middle America. But Warren and Tyagi make a compelling case that this is not necessarily the whole story. Instead, they propose that the culprit is in large part the ever escalating cost of housing and education in America’s suburbs. As many parents chase the better schools in an attempt to assure their children the best possible education, real estate prices in areas serviced by those schools rise and with it the cost of the homes.

At one time, families could count on stay-at-home mothers as a kind of financial safety net if disaster struck. If dad lost his job or some other financial problem arose, mom could go to work either fulltime or part-time to help tide the family over until the crisis abated. But today, when so many families are dependent on two incomes, families are at a frightening risk should any financial crisis arise in the family. The authors do propose some modest solutions, but its doubtful many of their suggestions would ever be implemented on anything more than a limited basis. Among their suggestions are rate caps on credit cards and open-access public schools, but none of their suggestions can truly provide a fix for the problem.

Some people have dismissed their findings and conclusions. Unfortunately, I believe they are truly on to the core of the problem.

While this book does indeed paint a bleak picture, with bankruptcy often proving to be the only solution for many families, it is a timely and recommended book for anyone concerned about the financial future of Middle America. I would criticize the authors for not offering more realistic solutions to the problem, unfortunately in the current economic environment there may not be any.

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