Debt Case Study

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Recommended: Introduction to debt crisis

Debt is one of the most common problems in the US right now, with the average indebted household revolving balance being around of $15,000. To some, this is just part of the normal occurrences of their life, but for others, this debt passes the point of average and starts becoming unmanageable. The worst part of this reality, is that for the most part, it is people’s poor decision the determining factor in these cases. Most of the times, when debt reaches this point people get so overwhelmed that in the look for solutions they only made things worse, to the point that they end up with only one possible alternative: file for bankruptcy, which is a process that allows consumers and businesses to get out from under debt with the protection of the federal bankruptcy court. For the most part, bankruptcies …show more content…

This work will defend the statement of how the bankruptcy relief granted to individuals under Chapters 7 and 13 is undermining business operations by forgiving debts owed to businesses and should be stopped.
Opinion
The idea in question is very accurate, and should be taken into consideration when making long term decisions. Nobody forces a person to get a loan from creditors to be able to afford more than their means can reach. Most of the time, it is this people the ones that place themselves in very precarious situations with very poor decisions. Beyond that, what happens to the business that is owed the money when these people file for bankruptcy under the chapters being discussed?
Chapter 7 is the single most common type of bankruptcy filed in

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