Bankruptcy Options Often Seem Too Few
Generally, the bankruptcy options for
consumers involve two types of filing choices Chapter 7 and
Chapter 13. Chapter 7 eliminates the mitigating debts that have
piled up for both individual consumers and businesses. Chapter
13 restructures debts for individuals to put them into more
manageable increments of payments. Normally, payments to
creditors on a Chapter 13 filing are paid off over the course
of 3 to 5 years. These chapters will effect assets such as
homes, consumer debts, and credit. These choices will affect
credit for as many as ten years. The chapters stay on credit
reports for three years beyond when most debts fall off, which
is typically seven years. The ability to obtain credit and
loans for homes and autos can be affected for a few years
beyond the process. Consumers should only go for these
solutions as a last resort when every other possibility has
been exhausted.
Statistics show that about one in every
seventy people file on an annual basis. Bankruptcy options are
of the utmost urgency to keep more consumers from filing. Some
consumers really believe they are without any other choice.
Many will file proceedings for amounts as minimal as $5,000.
The burden of insurmountable debt and relentless creditors
calling and sending venomous letters, causes consumers to
succumb to this as their sole choice in the matter. Credit
counselors may even advise a person that going for broke is the
best way to go. This may or may not be true since the
implications of filing can remain as public record with the
courts up to twenty years. Employers can dig and sometimes find
the information decades after items have been discharged from a
person's credit.
We need more bankruptcy options for people.
Lenders need to take some responsibility and have more programs
in place to assist debtors that find themselves in trouble.
Sometimes predatory lending practices can land a person into a
situation where they seem to have no other choice. Also, credit
should only be extended to people who truly are qualified.
Stricter measures need to be put in place to help with the
situation.
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