Is Filing Bankruptcy My Fault?
Filing bankruptcy is NOT your fault. Yes, it is your finances that we are discussing; however, the financial hardship that brought you to this point was likely something you could not avoid. Our Elizabethtown bankruptcy lawyer consults with individuals and couples each day who feel guilty for meeting with a bankruptcy attorney. It is not uncommon to feel as though we failed in some way when we are faced with a financial hardship. This is usually far from the truth.
Even for those who may have gotten themselves into financial trouble because they spent too much money and used credit cards for luxury items, there is no shame in seeking bankruptcy help. Congress established bankruptcy laws to give debtors a fresh start — all debtors. The law does not discriminate nor judge.
You Are Not Alone!
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Even the person who seems to have it “together” financially can experience a financial hardship that creates debt they cannot afford to pay. Some common reasons a person may file bankruptcy include:
• Job Loss – Losing your job is something you cannot control. Layoffs and business closings take many employees by surprise. Even if you have funds in savings, losing your job can be devastating. Long periods of unemployment will drain your savings leaving you no choice but to use credit to make ends meet. By the time you find another job, the debt is more than you can handle. Filing a bankruptcy will give you a fresh start to recover and rebuild.
• Injury or Illness – An unexpected accident or illness can result in thousands of dollars in medical bills. Even with good health insurance, you could still face thousands of dollars in unpaid medical bills. If you are out of work, this only makes the situation worse. A bankruptcy filing will discharge the medical debt and other unsecured debts so you can rebuild your finances and get your life back following an injury or
This can range from divorce to mental illnesses (“Factors Contributing To Homelessness”). In some statistics taken from The Homeless Resource Network, the biggest cause of homelessness is from the loss of job or income someone is bringing in. If someone were to lose a job unexpectedly, they could have trouble finding a job with the same income they were used to earning, making it hard to keep necessities in their life. Another important element that contributes to people becoming homeless is the use of drugs and alcohol. Even though most people who have one of these addictions do not become homeless, it becomes a problem when they are poor and the addictions take over their life (“Homelessness in
One reason why people become homeless could be due to the decline of housing units affordable to extremely low income households (National Resource Center on Homelessness and Mental Illness).
Health care will shorten bankruptcy. It was said that over 50% bankruptcies are contributed from medical problems. Medical contributes 17% in bankruptcies. “This threatens the solvency of solidly middle-class Americans. They propose comprehensive national health insurance as a solution.” (Medical Bankruptcy: Myth Versus Fact) In 2008 politicians were used to show that the health care system needs to be changed. It needs to be changed so it can control costs and give more people coverage. “Debtors cited at least one of the following specific causes: illness or injury (28.3 percent of respondents), uncovered medical bills exceeding $1,000 in the past two years (27 percent), loss of at least two weeks of work-related income because of illness
Corporate bankruptcy is an important issue for investors, debt holders, and managers. The implications of bankruptcy proceedings can have a tremendous impact on economic outcomes; thus, it is vital for all parties to be versed in the framework and procedure of a bankruptcy. This study will attempt to address several issues, such as the costs of bankruptcy between Chapter 7 and Chapter 11, the risks undertaken in proceedings (looking primarily at APR violations), and conflicts of interest amongst the aforementioned agents of a bankruptcy proceeding. Initially, a historical summary of U.S. bankruptcy laws will be undertaken, as bankruptcy code has been reformed quite frequently.
Suddenly I found myself in serious debt from missing work, doctor?s office visits, and paying outrageous prescription costs. I am still paying off medical bills for lab work, and other tests and emergency room visits.
With the increase of unemployment in the United States, people find it difficult to make ends meet, so they rely heavily on unemployment benefits. Unemployment checks enable people to support their family and pay their monthly bills while they are seeking employment. My friend James has been working for Safeway for about eight years and got laid off with a wife and a two-year-old daughter to support. With the help of the unemployment check, he was able to provide for his family temporarily until he found a job where he was able to provide for his family permanently. Indeed in 2010, unemployment benefits kept 3.2 million people above the poverty line—which is roughly $17, 300 for a family of three. A report from the US Government Accountability Office (GAO) gives some indication of what might lie ahead for people who exhaust their benefits (Kaufmann). ...
The root cause of homelessness is largely be explained by economics: people who become homeless have insufficient financial resources to obtain or maintain housing. Data from the U.S. Census Bureau’s 2010 American Community Survey (ACS) shows that 75% of households at or below the poverty line are severely housing cost burdened. Unexpected financial crises would jeopardize housing stability and lead to an increased risk of homelessness.
Student debt today is at it’s worse, as it doesn’t matter who you are, your circumstances, or your status; if you have a student loan debt, by default you can’t lose everything. The government will not let you file bankruptcy, as people like Sallie Mac made sure of by paying lobbyists millions of dollars.
Credit card debt is what’s known as unsecured consumer debt. Card debt is not necessarily collected through the use of a credit card. Debt can be accumulated from transfers, such as transferring money to make a payment or to another account. This can get you in a cycle of revolving debt meaning, what you owe can spiral out of control. Many people owe money because of the current financial situation of the U.S Economy. Credit card has a major impact on one’s personal wealth. People who have an asset have personal wealth; some examples of an asset are your house as well as your land. Many people may feel if the house burns down or gets destroy in a tragedy, then they have nothing left but that not the case. You still have your land, but asset also come in form of items that may be more personal such as a car, bank account, stocks and bonds or an item of value that has been passed down for generation.
If I stayed open, my employees would need to help, and this might be hard for them since they probably would want to be with their families in a time of crisis.
The largest cause of unemployment can be attributed to recession. The term recession refers to the backward movement of the economy for a long period. People spend only when they have to. (Nagle 2009). With people spending less there would be less money in circulation therefore, enterprises would suffer financially and people would suffer too. This is so because recession reduces the fiscal bases of enterprises, forcing these enterprises to reduce their workforce through layoffs. These enterprises lay off their workers in order to cut the costs they incur in terms of wage and salary payments.
Hospital bills are very expensive and for the people that don’t have insurance will be stuck with a huge bill that they more than likely can’t pay and will be put out the hospital as soon as the doctors see fit. They won’t just be able to lay around in a hospital room.
A person who is unable or unwilling to pay his or her debts may declare bankruptcy. The state of being solvent means that one has the ability to pay his or her debts. However, insolvency means that a person cannot pay his or her debts. In order to declare bankruptcy, a person must file a petition for bankruptcy in a bankruptcy court. A voluntary bankruptcy proceeding is started by the person who is declaring bankruptcy, whereas an involuntary bankruptcy proceeding is started by the creditors of the bankrupt person. A creditor who is not a party to the bankruptcy proceedings, but who has an interest in the proceedings, may file an ex parte application with the bankruptcy court.
One of the most life changing effects of unemployment is the loss of income. Especially if they are a single parent of if they have a large family to support. Having no money means eventually having no food, no clothes, no shelter, and no car. It also prevents one from doing many things and activities, even though their amount of leisure time has increased. One might not have money to go to the movies, play on sports’ teams, or do any other recreational things. Being unemployed for a long enough time leads to a lot of debt. Any money that has been saved ends up getting spent rather quickly with all of today’s living expenses. Twenty thousand dollars may seem like a lot of money to some people, but with no income that money gets spent before you know it.
Today, the possibility of loosing your job looms on the horizon for many of us. Up until a few months ago I was among the millions of people that is unemployed. Dealing with the loss of job is very similar to the emotions one feels when they experience loss through a divorce or death of a loved one. Unemployment carries an array of emotions ranging from stress, fear, anxiety, and depression. Unemployment contributes to low self-esteem and to family instability, decreased family relations, and in some cases family violence. Lessons can emerge from those who cope well with unemployment, but the immediate goal is to survive emotionally and financially until you have a clear direction for you and your family. In my research paper I will explore not just the individual directly, but the economical and psychological affects unemployment have on the family as a whole.