Recently, Americans have been awakened by a new debt crisis. The government is in debt at 107% of GDP. This is the highest level in US history. The US government is not only in debt, but the average American household has a $ 16,000 credit card debt and a consumer debt of about $ 35,000, not counting mortgages. It has recently been reported that the American consumer has now accumulated a staggering 154% debt-to-profits ratio. People realize that life is too short to allow debt to take possession of their souls. Most families require both adults to work to make ends meet.
What about the days when Mom stayed home with the kids and that there was a strong family unit? Now everything is a product business and the only way to do it is to use credit. Most people live well beyond their means and need to declare bankruptcy to clean up their accounts. Most Americans today rob Peter to pay Paul by borrowing more each month to make ends meet. At some point, the wheels of this train will fall and they will hear the strident sound of constantly calling creditors.
Creditors do not want debtors to know that they can go bankrupt and clear all their debts. It 's really not that bad to live with money for a few years until the credit returns. In fact, it's a kind of release knowing that the creditors do not belong to you anymore. After filing for bankruptcy your financial decisions are yours and are not based on the fact that there is enough left to pay someone. When times are tough, it is best to consult a bankruptcy lawyer and see if the filing of a bankruptcy under Chapter 7 has anything to offer in this situation.
There are other ways to get out of debt, but nothing holds the power of bankruptcy. Bankruptcy filing has the power of automatic suspension which stops all recovery activity against the debtor immediately after the filing of the petition in bankruptcy. Automatic suspension interrupts any legal activity, including foreclosure, prosecution, judgments and garnishment. The family can regain control of its financial future by using the power of a bankruptcy filing. The bankruptcy filing process under Chapter 7 generally lasts only 4 to 6 months. To consider how long it would take to pay all this debt is a considerable period of time. As interest rates begin to rise, banks will begin to reduce their clients' available credit and ask to be paid. It is better to be ahead of the curve when you see the writing on the wall.