Filing Bankruptcy Video

Bankruptcy is a process designed by the federal government in an effort to help people, both businesses and consumers, to get rid of their debt. There are several different types of bankruptcy that can be filed. In some cases, debts are paid out of the person or companys assets.
In other types, the debts are reconstructed to help the person or company repay the debt in a way that they can do. Sometimes, they are called liquidations while other times they are referred to as reorganizations. In either case, they are a serious, and financially life changing event that should not be taken lightly.

Chapter 7, 11, 13: So Many Numbers?

There are several types of bankruptcy, each defined by a number that is representative of where the item is in the tax code. Here’s a look at the differences in each of these.

Chapter 7: This type of bankruptcy is called liquidation. To get the values from it any owned property is sold or liquidated. There are some types of property that are exempt from bankruptcy.

This exempt property changes from one state to the next. Once the allowable property is sold, the value from it is used to pay down debts, as the court determines. Once everything has been liquidated, any remaining debt is forgiven, in most situations.

When looking at bankruptcy service; it pays to do some careful research and seek help and support from professionals.

Chapter 11: This type of bankruptcy is one for businesses. It is used for partnerships and corporations. Those that file this will file for a reorganization of their debts. Like Chapter 13, you will need to pay down your debts over a period of time, while all property is kept. Generally, the business is kept up and running, but debts are restructured so they can be repaid over time.

Chapter 13: This is a reorganization type of bankruptcy in which the debts you have are reorganized in a way so that it helps you pay them off quickerr and without as much added interest. In this type of bankruptcy, you will keep your property. You’ll need to establish a repayment plan with the court, which generally requires that the debt is paid off over a period of two to five years, depending on your needs.

Common Questions

Questions always arise about bankruptcy. Here are some of the most common:

* Will I lose my home? Every state defines what property is allowable to keep during a bankruptcy (chapter 7) but in most cases, it is considered a secured debt. If you are in good standing with that lender, chances are good you’ll be able to keep the home as long as you keep making payments. To help repay your lenders some states will require you to liquidate the value of the home if there is a substantial amount of value in it.
* Do I need an attorney? With the new bankruptcy laws that have been put in place, it is now not only common but necessary for you to have an attorney to help you through the process. They will help you meet guidelines and timelines and they will help you qualify to be a filer, as many people are finding out they do not qualify due to new laws.
* Will it destroy my life? Bankruptcy is a serious undertaking which will place a black mark on your credit history for the next ten years. It will be more expensive to use credit and you may find it more difficult to make purchases this way.

In many situations, bankruptcy is the best thing for you. Be careful with using it though. New laws only allow you to file bankruptcy in dire situations.

Going Bankrupt Video

Are you positive that going bankrupt is the only way to clear your debts and repair your credit? If you think you have no other alternatives, you may be wondering, how do file bankruptcy.

You’ll need to be aware of the process that comes along with filing, so here are some ways that you can prepare yourself.

First, and most importantly, you will need to take a good look at your finances, perhaps with an accountant, to be certain that there is no other option for you but bankruptcy. A bankruptcy can stay on your credit for about 8 years, and during this time, you may not be able to purchase a home, buy a new automobile, or receive a line of credit from a loan or credit card company.

So, if there are other ways for you to repair your finances without having to take this step, talk it through with your accountant.

Also, under the Bankruptcy Abuse Prevention and Consume Protection Act, you must receive consumer credit counseling from company that the U.S. Trustee has approved within 180 days of the filing of your case.

Then, you’ll need to determine exactly how you want to file. Chapter 7 bankruptcy is becoming rarer, since Chapter 13 involves financial organization and will help individuals in the long run.

Under Chapter 7 bankruptcy, an individual must sell valuable items and use the funds to repay debts. This could be a fairly unstable way to pay off debts, since there are no guarantees that the items will sell in a timely manner.

When looking at going bankrupt; it pays to consult professionals as a good way to move forward.

Chapter 13 involves wage garnishment, which means that a set amount or percentage of your paycheck will be taken each pay period so your debts can be settled.

If you still wondering how to file for bankruptcy you may want to take some bankruptcy classes so that you will have a better understanding of the process.

Completing the ‘assignments’ given in class may help you to reach your financial goals faster, and will teach you about things like getting the best insurance policy for yourself, your home, and your automobile, creating the most realistic budget for paying off your debts, and using your credit wisely.

What about the costs involved? Filing a claim could cost up to $1,700, but you may be able to pay in installments depending on the state that you file your claim in. If you are filing Chapter 7, you will have to pay your fees upfront, but your payments can be included in your overall payment plan for Chapter 13.

Economic recession and economic depressions are well known to bring about increased anxiety leading to depression and higher suicidal tendencies. The stock market crash of 1929 is a great example of how emotional states can lead to self-inflected harm. In some cases, peopel resorted to suicide to end their pain caused from the loss they suffered.

Unknown to many, people who commit suicide in the wake of economic recessions and financial crises are not individuals with pre-existing mental illnesses.  They are commonly middle-aged men on the verge of debt and bankruptcy or pushed to the brink.

About sixty percent of suicides in 2006 (worldwide) took place in the Asia Pacific region.   In Japan, Sri Lanka, and some parts of China reports are that more than 20 out of 100,000 citizens kill themselves each year.  More than twice as many in Australia and New Zealand. Of course this is also driven by cultural factors.

When several countries in Asia-Pacific were hit by an economic crisis in mid-1990s, there was a relative increase in the number of suicides among middle-aged men.  This group were said to be the most affected group by the economic recession.

Aside from economic factors being an underlying reason for suicide, it is also driven by societal values related to shame and humiliation. In societies where these matter a lot such as in Asian countries, suicide levels tend to increase during economic recessions.

Economic recession has great effects on youth and children, with poverty and financial difficulties at times pushing them towards suicide.  In Israel in 2003, a 15 year old killed himself when the family’s electricity service was cut.  In the suicide note, the teen-ager mentioned that he does not want to be a burden to his mother who raised him as a single parent.

In the Philippines back in 2007, an 11 year old girl ended her life because of poverty.  In her suicide note, she wished that her parents will have a stable job and that her siblings would be able to go to school regularly.  This incident drew attention towards the poverty programs the government has in the country.

Governments and concerned institutions globally are taking steps to address this issue.

An example would be the steps being undertaken by the Japanese government.  Some new measures are changing work patterns to allow more flexibility and funding early detection and treatment programs.

The Japanese government are also providing better mental health counselling at the workplace, networks of community psychiatrists and public campaigns to raise the awareness of the problem. Telephone hot line services are also readily available. There is a new software being developed to filter out websites that promote group suicides.
Australia, in Asia-Pacific, is the first country to initiate the prevention of web based suicide groups.

Aside from government efforts, there are personal steps you can take to help a suicidal person:

1. A suicidal person is carrying a burden that they can’t handle anymore. Listening is important.

2. Be sympathetic, non- judgemental, patient, calm and understanding.

3. Avoid trying to offer quick solutions by belittling the person’s feelings.

4. Dealing with a suicide threat is stressful.  Seek assistance o decompress afterwards.

6. Try to pursuade the person to seek professional help or help the person to get some professional help. Suicide issues are extremely complicated.

6. If personal efforts fails, don’t blame yourself. It is the person’s choice. It is wise to ask for grief counselling and suicide survivor support groups.

An economic recession occurs when there is a significant decline in the economy over a period of several quarters. This is reflected in lower of  consumer spending, workplace employment, industrial production, real income and wholesale trade.

A technical definition of a recession is two consecutive quarters of negative GDP growth.

According to experts, an economic recession is normal because it is part of the business cycle with things normally improving within 16 to 18 months.

The business cycle includes periods of recovery, expansion, slowdown and recession. During recovery, the GDP begins to improves. When the GDP grows robustly, expansion occurs at a broad level.  This may be then followed by a slowdown occasioned lower consumer spending.  This then leads to weaker demand for goods and services which can lead to a recession.

The last economic recession occurred in 2000 and 2001 which featured three quarters of negative growth followed by three positive quarters then five more quarters of sub par growth. Experts say that the same trend will happen right now, that is in the current recession that started in 2007.

One strategy that the government usually uses to stimulate economic activity  is to lower interest rates.  Just last year, the Federal government slashed interest rates three times towards the end of the third and fourth quarters so that overnight loans between banks could be borrowed at 4.25% which happens to be its lowest in the past 2 years.

Experts say that what makes this economic recession different from what occurred after the Second World War is that this one is caused by falling home values and a crisis of confidence among fixed income investors.

Despite the fact that the country has endured this phenomena time and again for over 50 years, there is still no way to predict when it will happen.

Some use the stock market as an indicator. Others use the inverted yield curve which uses yields on a 10 year and three month Treasury securities and the Fed’s overnight fund’s rate. The unemployment rate is also another which happens to be one of the things that make up the index of leading indicators. But the unemployment rate is what is called a lagging indicator, meaning that it indicates what has happened in the past but is useless in predicting the future.

An economic recession lasts months at a time. If it should continue for a much longer period, then this is called a depression which is something that the world and not only the US experienced at the end of the First World War. This lasted for up to 4 years that many hope will never happen again.