Bankruptcy

Bankruptcy

By: Haley Bernacki

Unit 4 alternate assignment

In the beginning you asked if anyone was having trouble hearing. You mentioned the chapter 7 bankruptcy. You said it is normal that they may lose some property. Bankruptcy provides some much needed relief. It doesn’t always provide what the debtor needs. Most lawyers have a list in their head that there is a list that they know will help their client. There are ways to settle with the creditors. If you owe money on a visa card and the minimum card payment is a certain amount you can try to reduce the amount that is owed to the creditor. There are ways to handle things. Many people do not realize that there are ways to handle and settle debts. There are federal programs that can help out as well. There are ways to reduce the value of the debt. You gave some examples. There are many programs that will allow homeowners to make a deal and settle the debt. That is one example of what can happen. If you owe a certain amount and you fail to make payments and walk away then they will foreclose on the house. The creditor can then take you to court. There are many alternatives to bankruptcy. It is better to try to work with the creditor if you are the debtor. If you are a debtor that owes money and you fail to respond to the creditor or avoid them rather than try to make payments then they will more than likely go to the courts and file a lawsuit. It is just how it is. It will cost you less money if you try to work something out with the creditor. You gave an IRS tax example. Sometimes you can make an offer to someone and have the debt cancelled. There are many opportunities. You can always borrow money to pay off the debt. It sounds complicated but it can be done. There are other sources for loans out there other than banks. Medical bills and credit cards bills are considered short term loans. If you go to the bank and borrow enough money to pay it back that is also an alternative. You can sometimes get...