Filing for bankruptcy will be a thing of the past
Most of us already are aware that the change in the bankruptcy law will be effective this October. Those who are already in debt argue that it is unfair. Companies that have
suffered profit loss through the years are relieved to hear the news. The change in the bankruptcy law will force individuals who are in debt or facing debt to file for Chapter 13 bankruptcy. The old way of just erasing debt will no longer be an option to most.
Chapter 13 of bankruptcy:-
Is more like debt consolidation. Unlike the other options of filing like Chapter 7. Chapter 13 does not liquidate your assets and pay for any of your debts. The individual is still responsible for paying off their debts. It is a plan that is determined by the courts and payment arrangements are then made. Unlike going through
a debt consolidation service your allotted time to pay of your debts is determined by the courts. With the future change in the bankruptcy laws people should start planning new ways to avoid the need to ever file.
One very important thing is to never live outside your own means. If you have credit cards don't use them as if you will have the money every month to pay the minimum balance.
Be prepared for the unexpected such as a loss of your job or loss of any other source of income. This is where some people get into trouble. Protect yourself and your assets by
being insured. Some people get into debt due to unexpected medical expenses or property damage.
A major cause to the change in the bankruptcy laws is do to some people abusing their credit cards and then filing to erase their mistake. Also some people have made the same
mistake and have filed more then once. There are a lot of people that find this decision unfair.
Reasons for the bankruptcy law change :-
One of the reasons for the bankruptcy law change is because of over use of the system. There are actually some people who pre plan filing for bankruptcy as they abuse their credit cards. It sounds hard to believe, but it is true. One may ask how this is fair to the people who didn't do anything wrong and still landed them self in debt? Unfortunately changes in the law aren't always fair to those who did nothing wrong. As the old saying goes, " It only takes one bad apple to spoil the bunch". The only thing we can do now is become more responsible about our finances. Take more steps to avoid the need to ever file for bankruptcy.