Studies: Bankruptcy Too Expensive to Reverse

1. Studies: Bankruptcy Too Expensive to Reverse Wasatch Peaks Credit Union 4723 Harrison Boulevard, Ogden, Utah 84403 (801) 627-8700

2. In many, indirect ways, credit is the biggest source of debt. Mortgages and student loans lead the official list, but parents, homeowners and students all need a line of finance that can only come from credit companies. Cash money isn’t always available, and the process of getting a credit card is too easy for most Americans to deny. Instead of fiscal security, more and more Americans are getting into debt and are finding it hard to bounce back. The Federal Reserve Bank of New York, studied themselves the plight of financially struggling people, and found out that those who are too poor can’t even file for bankruptcy. More troublingly, these individuals have no other means of paying their debt, bar filing for bankruptcy. Everything Needs More Money An earlier study already documented how much it would cost an American to start the bankruptcy process. University of Maine Law School’s Lois R. Lupica Chapter 7 filing cost more now than it ever did before, going from $600 to $2,500. Include lawyer fees, and then it adds a further $986. Furthermore, it’s not as if these people can afford something else; an alternative to bankruptcy say. More often than not, some debt relief companies and credit counselors smear bankruptcy only to promote their brand of debt help. According to Credit.com, it would be best to avoid these deals and utilize the authentic process, if that’s possible. Until something replaces the bankruptcy law signed by former president George Bush in 2005, there’s no way around it. The bankrupt will remain there, and most of them have no way of getting out. Considering they are at the bottom of the income chain, it’s even harder.

3. When Banks Come to Help Contrary to public knowledge, financial institutions aren’t there just taking their money. Banks, credit unions and even some minor lenders are offering packages for their clients to save wisely. In today’s economic and political landscape, no one can afford to be so complacent. As early as this year, financial experts are already predicting what will happen in the next crisis. It’s worth listening to economists, especially as they are most equipped to make forecasts. But it’s dangerous to take their word as to what will happen in the future. The safest way still is to create a stable foundation and learn the ancient way of saving money. It’s not the most progressive way, nor an innovative one, but it does work. Filing for bankruptcy is possible, that is never in question. Nonetheless, to be in a position to consider it is never good, too. Being financially secure doesn’t come in one way, and people should try their best to be secure for the next financial impasse.

4. Sources: https://wasatchpeaks.com http://blogs.wsj.com/economics/2015/04/14/too-poor-to-file-for-bankruptcy/ http://money.usnews.com/money/personal-finance/mutual- funds/articles/2015/06/15/the-dangers-of-listening-to-financial-pundits