Home » Articles » Finance / Wealth

When Filing Bankruptcy Don't Worry About What to Lose But What You Get

When Filing Bankruptcy Don't Worry About What to Lose But What You Get
"""Over the past two decades, corporate America has inundated our culture. Our culture has been conditioned to believe that the winner is the person who departs with the most toys. Everyone admires their neighbor's possessions and desires them. People spend a great deal of time daydreaming about the new car they're attempting to buy or the 80-inch flat-screen television they saw at their neighbor's house while watching the Super Bowl. The banking and credit industries have made these desires a reality by permitting individuals to purchase these items on credit. Now, people are neglecting what they owe and searching for ways to incur more debt in order to acquire more material goods. Our ancestors would be rolling in their graves if they witnessed the virtues they instilled in previous generations vanishing into thin air. In the past, Americans conserved money and took pride in being debt-free. The new school of thought is that holding on home equity is a waste of available liquidity. It's a matter of leveraging everything to acquire more.

All of this has been caused by the credit and finance industry. They have done their research and paid billions of dollars to Madison Avenue to promote their agenda. Even those who must file for bankruptcy have been indoctrinated to believe that they are failures if they do not pay off their debts. Moreover, creditors want debtors to believe that they will lose everything if they apply for bankruptcy. They will do whatever it takes to keep a debtor enslaved by unpayable debt. This is far from the truth, which is why Congress enacted generous bankruptcy exemption statutes to protect a certain amount of property. It would be nearly impossible for someone who has lost everything to obtain the new start that bankruptcy promises.

A bankruptcy petition must be completed in order to file for bankruptcy. One of the petition's schedules contains an inventory of the individual's property. On this schedule, the bankruptcy petitioner must list everything they own, from shoes to pots and cookware. When filing for bankruptcy, the debtor can use an exemption to preserve various amounts of property. This is where a bankruptcy attorney can be of tremendous assistance. The bankruptcy attorney will be familiar with the intricacies and exemptions permitted by the local trustee.

During this period, the individual registering for bankruptcy will be required to appraise all of their assets. The bankruptcy code requires an individual to determine the property's replacement value, taking into account the object's age and condition. The majority of individuals use the old swap meet formula, which is not permitted by the code but is acceptable to many trustees.

When it comes to secured property, it is time for the individual to do some serious soul-searching and determine whether or not they will be able to continue making payments. If the debt is a mortgage, you need a place to live, so as long as you can afford to pay it, you might contemplate reaffirming it if you can afford it.

When it comes down to it, individuals petitioning for bankruptcy should not place sole responsibility on their own shoulders. Yes, they overindulged, but in many cases the banks set them up for failure by extending credit when they knew the borrower would likely never be able to pay it back. The majority of this debt is bundled and sold to an unsophisticated investor on the derivatives market. This is one of the reasons why the real estate market nearly collapsed in 2008, and it will happen again because the same individuals are repeating their mistakes.""

" - https://www.affordablecebu.com/

Please support us in writing articles like this by sharing this post

Share this post to your Facebook, Twitter, Blog, or any social media site. In this way, we will be motivated to write articles you like.

--- NOTICE ---
If you want to use this article or any of the content of this website, please credit our website (www.affordablecebu.com) and mention the source link (URL) of the content, images, videos or other media of our website.

"When Filing Bankruptcy Don't Worry About What to Lose But What You Get" was written by Mary under the Finance / Wealth category. It has been read 91 times and generated 0 comments. The article was created on and updated on 31 May 2023.
Total comments : 0