In the past year or two, even large corporations that appeared invincible have been pushed to their limits. If enormous conglomerates were unable to withstand the storm, what chance do we have?
While businesses and individuals alike attempt to resolve issues outside of court, creditors are so eager to get their money that it may take the threat of a lawsuit to get them to the negotiating table. Those who refuse to speak frequently receive nothing when the court becomes involved, whereas those who were extremely cooperative typically receive at least a portion of what is owed. In these circumstances, it is a matter of taking a chance, and the court would be the last option anyone would choose.
Indeed, the situation has deteriorated to such a degree that the government, in an effort to restore investor confidence, has begun to manipulate the true numbers so that companies and other nations begin to invest again. Imagine that the official unemployment rate is ten percent, but those in the know position it closer to twenty percent; this indicates that the government is attempting to conceal the truth.
The government enacted Chapter 7 and Chapter 13 in an effort to save those who would otherwise be forced to foreclose on their properties. This would be the responsibility of the government, as those evicted would have to rely on the government to bail them out and even subsidize their living arrangements for the foreseeable future. Given that the housing market has reached rock bottom, it would be unlikely for them to recoup much from the sale of their homes.
Negative equity and all that it entails placed a large number of people, including the banks that lent the money in the first place, in a very deep hole. Thanks to government bailouts, banks are only now beginning to see the light at the end of the tunnel during this severe economic depression, which the government refuses to acknowledge. Overall, this has been a difficult period for the majority of individuals.""
" - https://www.affordablecebu.com/