Tip:
Highlight text to annotate it
X
If you're asking me who is filing bankruptcy today it really runs the gamut. Demographically,
everybody from a single mother, to the head of a large family. Professionally, it's CEOs
of large companies, school teachers and even airline pilots. The one thing they all have
in common--it's the economy.
The economic downturn has spared no industry and no demographic group.People are suffering
in all walks of life.The causes of most individuals' bankruptcies are as equally diverse as the
people that are filing bankruptcy. Generally speaking, the number one is credit card debt.
What type of credit card debt? Credit cards are often used by people that are experiencing
a crisis in their life. Whether it's financial or personal, cards are used to supplement
a loss of income somewhere else.
But people feel guilty about credit cards, they really do. And they really think that
they should pay those bills. They really do. I've gotten somewhat immune to it because
I see it all the time, but I can see when they come in that there's a little bit of
a sense of guilt with it. And um so they do feel that they should pay those cards. And
then I try to explain to them that they took the creditor took risk when they issued that
card to you. For whatever reason the deal didn't work out. They understand that and
they've calculated accordingly. That's why you were charged such a high interest rate
on the card.
So don't feel guilty about credit card debt and discharging it. I can say that I can count
on one hand the times that I've seen the client's petition where they had credit card debt that
is as a result of reckless credit card spending.
It's always unsecured debt that is used to supplant a loss of income somewhere else.
The other issue's why people would file is if we would live in a state that home values
have plummetted and if they had any equity in their home they don't now and some people
will never have a chance to ever, they'll never be able to develop equity in their home
the home's values have plummetted so much.
I know somebody who that bought a condo for $250,000 and the one next to her sold for
$30,000. That's no lie. How do you ever get out of that?