Bankruptcy, the last resort or a fresh start
We are beginners in the line of entrepreneurship, in the line of travel industry. We realize that business has ups and downs like every life. Frustrations ans discouraging factors arise all the time. When i read the article of Larry Denton, who is a retired history teacher having taught 33 years at Hobson High in Hobson, Montana. He is currently Vice President of Elfin Enterprises of Montana, Inc. a business dedicated to providing information and resources on a variety of topics.
It give me a hint whether i should go on or not. Let me quote his words entitled: "Bankruptcy--The Last Resort or a Fresh Start. Each year more than 1,200,000 Americans file for protection under the federal bankruptcy laws, according to the American Bankruptcy Institute. Some are credit abusers or are financially irresponsible. But average working men and women who try to pay their bills on time can sometimes find themselves in financial difficulties, as well.
The sudden loss of a job, catastrophic medical bills, soaring credit card interest, student loans, a divorce or even a natural disaster can quickly wipe out a life's savings. For many, bankruptcy provides a second financial chance. Bankruptcy is usually used only as a last resort, after other attempts to solve a financial crisis have failed. You may want to talk to an attorney specializing in bankruptcy or a credit counselor to see if you really need to file for bankruptcy.
Perhaps an agreement can be reached with your creditors before you take this final step. Bankruptcy can relieve the honest but unlucky debtor from the crushing burden of excessive debt by providing a fresh start. It allows you to discharge some of your debt or allows you to get back on your feet without harassment by creditors. For many people the decision to file for bankruptcy is difficult.
may think that bankruptcy is a sign of failure or an indication
that you are incapable of managing your own financial affairs.
In reality, most people who chose to file for bankruptcy
intend to pay their bills, they simply do not have the resources
available to do so. By filing for bankruptcy, you get a
fresh start with a clean slate, free of the stress and guilt
that result from evading or fighting your creditors.
In Chapter 13, you prepare a reorganization plan to pay off your creditors either in full or in part. Once you file a bankruptcy petition, an automatic stay prevents creditors from starting or continuing legal procedures against you. In a Chapter 7 bankruptcy, your nonexempt property may be sold by a court-appointed trustee, who them makes partial payments to your creditors.
have the right to retain at least a partial interest in
certain assets, such as your home, car, clothing, household
appliances and furnishings, life insurance, pensions, and
tools of your trade. Creditors do have the right to any
collateral you have pledged to secure a loan. According
to a 1997 Georgetown School of Business study, chapter 7
debtors had an average of $41,228 in unsecured debt.
Be sure to discuss your attorney fees before hand and inquire as to whether you can pay in installments. In a straightfoward proceeding, the entire procedure usually takes four to six months. If you have regular income, Chapter 13 bankruptcy provides a method for repaying your debt over a period of time, according to court-approved plan. The time allowed ranges from three to five years.
same Georgetown study found that the average Chapter 13
debtor had unsecured debts of $20,953. To file for Chapter
13, you must file the appropriate schedules and petitions
with the court and pay a filing fee. You must also file
a proposed repayment plan. A trustee will be appointed to
follow your progress, make regular payments to creditors
and to provide the court with necessary financial information
example, you may not be denied a job or a driver's license
just because you filed for bankruptcy. The emotional and
psychological scars on you and your family may take some
time to heal. You may want to seek support by contacting
a professional counselor or clergy member, or discussing
your feelings with a close personal friend or family member.
End of quote.