Understanding Your Options and Bankruptcy
After the economic crash of 2008, along with continuously unstable or
otherwise unpredictable changes in the housing market, stocks, and bonds
system; many individuals often continue to find themselves going 'under water'
or accruing unusual amounts of debt in which they can't pay off or back in
time. Also, of course, this is not to exclude those whom simply just spend
above their budget on a regular basis and have accrued outstanding debt to
'the point of no return', not to exclude school loans, automobile payments,
property repossessions, and even wage-liens in some cases!
Although it may seem difficult, impractical, or simply unfair to reflect or
claim that one determining-variable alone could cause someone to 'go under'
and be in a position in which they either are eligible - or are seeking
eligibility - for declaring bankruptcy, it is not unheard of for such
to arise. One example of such an - understandably relevant - scenario would be
that in which an individual or family suffers a great economic hardship or
shift of finances and budget due to an unexpected health related injury,
illness, disease, or disability. While it's, understandably, advisable for
families to set aside an emergency-savings to prepare and protect themselves
from such instances, it's also understandably why and how so many average
lower to middle class citizens are also living paycheck to paycheck to-date.
Breaking down and understanding the differences between Chapter 7 Bankruptcy
and Chapter 13 Bankruptcy is significant, and shouldn't be thought of as
'complex'. In fact, understanding Chapter 7 Bankruptcy could be simply put as
a financial measure (surrender) in which you apply for approval of from the
government, typically reserved for those whom are unemployed - which follows
with a liquidation of nearly all of ones belongings to pay off any and all
debtors - while extending 'forgiveness' or credit not otherwise issued to the
remaining debt outside of this consolidation measure.
Chapter 13 Bankruptcy on the other hand is fairly similar, except it draws
more of a focus or 'guarantee' that one can keep their home or other valuables
throughout the course of declaring bankruptcy - barring they successfully
a deal, typically within a court settings - with each of their debtors over
course of the next 3-5 years on average, for paying off said-debt.
Before moving off the topic of Chapter 13 Bankruptcy, it's worth noting the
strong similarities to this, in comparison to your own independent ability—or
through a financial advisor or lawyer - to essentially reach out to your
and attempt to do the same thing, before making a decision so big that will
have the potential to leave a negative mark or stigma on your credit report
for the next 8-10 years, or more.
It's important to understand that both of these forms of declaring Bankruptcy
have the potential of negative long-term effects on your credit report,
ability to be employed in some places, and again is not a guaranteed solution
for just anyone that stumbles across the idea or term.
Many people might see declaring bankruptcy as a way of getting out of or from
underneath all of their debt, yet while you can’t re-file for bankruptcy for
at least 6 years in-between, it's worth considering the reality as to whether
or not even through successfully achieving bankruptcy if you'd have learned
your lesson, changed your ways, financial habits, and spending—or would you
continue to live about your means, accruing bills and debt far above your
means or reach?