Aug 03, 2016

Dealing With Middle-Class Blues Of Bankruptcy

In life, you may have achieved all the milestones you have set for yourself. School days were good. Got a nice job which paid you equally well. You worked religiously and maintained the family. Paid all your bills on time. You have seen your children graduate. And now when you look back you find that you have dug up a mountain of debts and you can't afford to repay anymore.

Changing economic times have put the inflation rates at an all-time high, but the wages haven't increased proportionately. This started in the 1970s got worse in the 2000s global meltdown. The expenses of basic amenities have shot up steeply.

The middle class has the pressure of having to buy a home, to save rental expenses. In turn, you take a housing loan to own one. Then you have to deal with the kid's education, which you paid from your salary till they reached undergrad level, then another loan (educational) for further studies. Thus mundane existence will go on, with ever-dwindling real wages. There comes a day where you have to borrow some more. You borrow anticipating clearing the previous loan and eventually clearing the current ones. That's how we have trained our brain to survive.

But there is something we don't see through the thin veil, there's a wind coming that will crumble the lifestyle built, like a pack of cards. The calculated risks of financial status might not work as expected like car drowning in a flood, health bills of the family members go beyond the insurance cover. This leads to financial collapse.

Bankruptcy shows a positive way by trying to equalize the financial situation.

Bankruptcy can be applied To eliminate certain debts legally, giving a fresh lease of life to the debtor. To remove some junior voluntary and all involuntary (from judgment) lines against real estate. To come out of cumbersome contracts and leases, allowing entering new ones. To fix the credit and probably improve it too. Chapter 11 or chapter 14 of bankruptcy law repayment plans of debts at zero percent interest. Get back to past mortgage due or secured debt payments To do away with chapter 7 cases without making any further payment to unsecured creditors.

Thus, the help of any kind should be grabbed with an open hand and mind. Bankruptcy might not bring extra income or make your decisions wiser on money management. In this generation it is difficult to even for a person on who leads a modest lifestyle, to survive. We are constantly subject to ridicule for underperforming financially. Given the current inflation rates as a benchmark, it’s hard to reach. Bankruptcy is a legal way to get out of all this, constitutionally. A good bankruptcy attorney is the expert legal resource to put an end to the ignorance and burdensome debt-ridden life of the middle class. As a final word of interest- Also you would be interested to be informed about the technical legal terminology before approaching the right attorney to understand his guidance in your bankruptcy case.