| North Americans generally enjoy one of the highest | | | | with basically nothing. |
| standards of living in the world. However, sometimes | | | | The horrendous interest rate on credit cards makes it |
| unexpected things happen to upset the apple cart. | | | | almost impossible for a person swimming in debt to |
| One day you can be cruising along, balancing your | | | | recover. Simply paying the minimum might keep you in |
| income with your outgo, when you suffer an injury or | | | | debt for the rest of your life, depending on how many |
| an illness and suddenly you cannot work. Maybe your | | | | cards you have. Bankruptcy can let you start over |
| business loses sales due to an economic downturn. | | | | using credit in a responsible way. |
| Perhaps you are laid off or lose your job entirely. | | | | It varies across the country, but in some cases only |
| No one can plan for such eventualities, and when they | | | | the person whose name is on the debts needs to file |
| do it's usually very traumatic for all those involved. | | | | for bankruptcy. If your spouse is not named on a debt, |
| Because everything is so expensive, the average | | | | he or she cannot be implicated. Of course things can |
| family needs to borrow money for basics like housing | | | | get rather complicated when some things are joint, and |
| and transportation, and therefore needs a steady | | | | some things are not, so getting the proper advice from |
| income to make monthly payments. Then too, credit is | | | | your lawyer is very important. It may be possible that |
| very easy to get and it becomes very easy to over | | | | one spouse can retain a good credit rating which could |
| extend. If a downturn comes, the whole thing crashes. | | | | greatly benefit the couple's ability to get on with life |
| It is not possible not to spend money. In the old days | | | | more quickly. |
| people might be able to subsist on a little plot of land, | | | | In spite of misgivings and fear of bankruptcy there are |
| growing their food and providing for themselves. | | | | some refreshing things to consider. A big one is that |
| Today we must buy all our necessities with cash, and | | | | the harassment you may have been subjected to |
| if we don't have cash, what in the world can a person | | | | from creditors and collection agencies will stop on a |
| do? Thankfully modern day bankruptcy offers a fresh | | | | dime. All calls will be handled by your attorney just as |
| start. | | | | soon as they are retained, and you will be able to |
| Because of certain stigmas, most people are hesitant | | | | answer the phone without fear. |
| to file for bankruptcy. They tend to wrestle with the | | | | If you are a renter, and not a homeowner, you don't |
| decision, thinking that they will be publicly scorned and | | | | have to worry that your lease may not be renewed. In |
| that they will have to give up everything. To help with | | | | many cases the landlord will not even be aware that |
| this struggle, a person really needs to consult with a | | | | you have filed, since they will probably simply rubber |
| bankruptcy attorney who can offer unbiased and | | | | stamp the renewal without doing a credit check. A |
| expert advice. Perhaps debt consolidation will solve the | | | | new lease might be a bit more tricky, but it's usually a |
| problem, but if bankruptcy is the way to go, here are | | | | less than pristine credit report that causes the |
| some interesting and helpful points to consider. | | | | problems rather than the bankruptcy. In fact you might |
| If you own your home and are being sued, filing for | | | | have an advantage over a person with a poor credit |
| bankruptcy will instantaneously stop the suit and also | | | | rating and lots of debt, since you will have no |
| stop your creditors from garnishing your wages or | | | | outstanding debt. |
| putting a lien on your home. Another problem such as | | | | In a strange twist, you will probably find that you can |
| foreclosure of your home or repossession of your | | | | start to build up your credit worthiness very soon after |
| vehicle can be stopped as well. Usually a payment plan | | | | the bankruptcy has been discharged. Your new status |
| is drafted which will take care of mortgage arrears or | | | | as a person with little or no debt, and presumably a |
| past due car payments over time. | | | | half decent income, makes you a very attractive |
| Usually you can retain your personal effects if you file | | | | potential customer to lenders and financial institutions. |
| for bankruptcy. Things like your house, your car, and | | | | After all, they exist to lend money and charge interest. |
| your household goods are protected. This may be the | | | | Just make sure that you borrow very, very |
| only way out a tough situation, because without it | | | | responsibly and don't fall prey to the unsecured credit |
| creditors can sue you, tie up your bank accounts, | | | | card offers that will surely come your way. |
| garnish your wages, and take your house, leaving you | | | | |