Bankruptcy can be an evil monster for some, for others it may be a relief, when choosing this option, one needs to be careful, be sure and have an attorney. There are issues that a bankrupted person finds themselves in afterwards that puts a social stigma on them (Effects of Bankruptcy-Retrieved September 2007). Your credit will reflect this bankruptcy for a ten year period and all banks will see that you’ve filed. Some banks will not allow you to start a new account because of this.
In all bankruptcy matters in the US when discharging debt, you must take an approved credit counseling class. When filing a chapter 7 bankruptcy, all debt, with the exception of child support, alimony, educational loans and taxes are wiped away and you are given a clean slate so to speak. You will be assigned a trustee who will then sell off non exempt possessions you own to help pay back at least some of the money to creditors. It is here that things can get ugly.
The items that will be for sale can include animals, electronics, homes, vehicles, rv’s, off road vehicles, musical instruments, books and in some cases even expensive wardrobes and jewelry. Many disagree with what is allowed to be taken and I am one of them. In regards to a home, if your mobile home, on your own property is worth more than $23,000 then they take it all and sell it. Funny how even a mobile home and the land you could never replace for $23,000. Your tools of the trade, over $3,000, they can take.
Well if a person uses a computer as part of the reason of their employment and it is determined to be worth that much then the computer is gone. What if you are a contractor and all the tool you use when working disappear because of this bankruptcy and cause you the inability to perform your job satisfactorily, then what? At the very least they can also confiscate partial unemployment benefits and workmen’s comp benefits. I can’t stand this thought. A person’s home should not be taken from them, especially in an unstable economy. This should be dealt with on a case by case basis.
Someone who has lost their job and has been put into bankruptcy and has a small home versus the one who has many assets and was just dumb in how they handled their finances should be looked at differently. Tools of the trade to be taken; well then that only seems to force a person back in to debt when they have to replace certain tools. Our unemployment or workmen’s comp benefits that put a person below minimum wage when received in full as it is and to take even a portion of those; forces a person into further destitution. Where is the fairness in this?
Just make sure you know what you are doing when you file for a bankruptcy because you stand to lose a substantial more than just debts and this can affect much in your life and thus create more financial stress. One option you do not have after you lose, is the ability to file suit, even if it has interfered with your employment, even if it causes you to lose your home, so watch this devil that you seek and make sure you don’t sell your soul.
Works Cited Bankruptcy in Oregon. Lexis-Nexis http://research. lawyers. com/Oregon/Bankruptcy in Oregon. html. Retrieved November 30, 2008 Emerging Chapter 11 Issues in Bankruptcy Administration Making Chapter 11 Bankruptcy Attorneys More Relevant. 2008-http://www. bankruptcylawfirms. com/national-content. cfm/Article/9776/Emerging-Chapter-11-Issues-in-Bankruptcy. html. Retrieved November 30, 2008 Sheryl. Is Bankruptcy the Right Thing for Your Family? October 2, 2008. http://www. abajournal. com/blawgs/sc-bankruptcy-consumer-law-blog/. Retrieved December 1, 2008 (IBID) Sheryl. More on Bailout + Bankruptcy Reform. September 24, 2008. http://scbankruptcyblog. com/2008/09/24/more-on-bailout-bankruptcy-reform/. Retrieved December 1, 2008.