The throes of debt!
"Debt is like a saddlebag, and you, the horse that's carrying the bag."
-Anonymous
AS of 2022, Americans have $986 billion in credit card debt. Nearly a trillion dollars.
But what makes this number really STAGGERING is that in 1965, this number was ZERO. WHY?- Because there was no credit card, and Americans could only buy what they could afford. How's that for a novel idea?
Fast-forward 56 years and we are now in the midst of a DEBT ARMAGEDDON. Not only does the US have the highest national debt (out of every country on earth), but so do its citizens. Way to go AMERICA....you ROCK!!
Alright alright....you're probably screaming for me to pump the brakes. After all you're not reading this to hear some sermon about financial destitution blah blah blah.
YOU'RE RIGHT! Let's get to it then.
Here, are 5-Reasons how BANKRUPTCY can save your LIFE:
1. Fresh Start
Every year on December 31st, everyone (yes, this means you too) comes up with a new years resolution that they are CONVINCED will give them a much needed fresh start.
NOW, whether this pans out or not is a different story.
BUT it suffices to say that when it comes to Chapter 7 Bankruptcy, a fresh start is not theoretical, it's in your face, slam-dunk, literal!!
Bankruptcy wipes your debt clean. YES, there are some exceptions (student debt being one of them), but by and large, your debt (credit card, hospital bills, etc.) is erased.
Thus, paving a real path for a fresh start.
One devoid of astronomical interest payments and unrealistic repayment plans.
2. Your Property is Your Property
After you file for bankruptcy and the dust finally settles, the property you come into, is yours! Not somewhat, but 100%. Bankruptcy is a no strings attached action.
In other words, Bankruptcy does not follow you for the rest of your life.
Once its done, its done.
YES, your credit will suffer for awhile, bankruptcy does that; but keep in mind, so does debt. The silver lining is you can start improving your credit score right away.
Better yet, all future income and property you acquire, is 100%, yours.
3. NO Limit Debt
You may have racked up so much debt that for lack of a better phrase, "You're going up SH*T CREEK, without a Paddle." All around, the world is existentially crashing down, and [salvation] seems like nothing more than a empty platitude off a fortune cookie.
BUT before you throw in the towel just yet (plunging into the eternal void), hold your horses. And listen up! Bankruptcy does not wipe out some debt,....it wipes out ALL debt.
YES, there are caveats, but for most of you, this is going to be a non-issue.
YOUR DEBT, most likely is forgivable; and will go POOF before you can say "antidisestablishmentarianism," five-times, really really fast.
4. No Repayment Plan
Unlike Chapter 13, there is No Repayment Plan for Chapter 7 Bankruptcy. This means that you are unequivocally "Off the Hook" for any and all debts.
5. Debt is Discharged Quickly
In most cases, the YOU will be debt-free in as little as 3-months. Not years, not decades, but 90 days. How's that for record time.
Key Take Away
The common misconception about bankruptcy is that it leaves you worse off and that it's something to be ashamed of; and that you can only file when you're penniless and destitute.
I'm here to say that none of this is true, at least not to the degree people have imagined it to be.
Listen, contrary to the tenor of this blog, I am not romanticizing Bankruptcy. Truth is, if you are financially capable of paying off your debt, you should. That's not who this blog is for.
This blog is for those that are in "so deep" that even if they moved heaven and earth they'd still find themselves in-between a rock and a hard place. These are the people I want to reach. These are the people who stand the most to gain.
Deciding whether to file for bankruptcy is not an easy decision and something you are really going to have to think about, long and hard.
But in today's climate, there is no such thing as an easy decision.
So---
FORGET what you think you know about Chapter 7 Bankruptcy, and ask yourself two fundamental questions: One: are you in too deep?
And two: are you without the means to pay it off? IF you answered YES to both of these questions, then Chapter 7 Bankruptcy might be right for you.
Until next time my legalites!
-RJM LAWYER
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