Most of our Escondido readers know that filing for bankruptcy can be a just the start of a complicated and oftentimes lengthy process. But, what our readers may not know is that the Chapter 7 bankruptcy process can be a bit faster than other types of bankruptcy.
By the time an Escondido resident decides that it is time to file for bankruptcy, most of the hardest decisions have been made already. These are decisions based on weighing the pros and cons of filing for bankruptcy, such as balancing how great it will be to be out from under the dark cloud of debt versus the short-term and long-term effects on the filer's credit score. But, after the decision has been made, there are a great many more steps to be taken.
For Escondido residents who are considering filing for bankruptcy, there are often more questions than answers. And those questions can be tough, because many people just don't know a whole lot about the process. All that most people know about filing for bankruptcy is the common, and sometimes misleading, perception that the process wipes out debts while at the same time ruining the filer's credit. There is no doubt that filing for bankruptcy comes with pros and cons to consider, but for most people their primary concern is what will become of the family home.
Any of our Escondido readers who have children are probably pretty familiar with Nickelodeon, and anyone familiar with that TV station probably remembers the show "Drake & Josh." Although the show is no longer on the air, one of the stars, Drake Bell, has attempted to continue his acting career. However, Bell, now 27-years-old, has apparently run into some financial problems and is filing for bankruptcy.
Most of our San Diego readers are probably happy to see the occasional report about an improving national economy. After all, an improving economy means more jobs and better wages, which allows Americans to pay their bills on time and pay down debt as well. However, in what some people would consider a counterintuitive prediction, one recent report noted that bankruptcy filings may actually increase as the economy improves.
When the news breaks that a celebrity has filed for bankruptcy, the initial reaction can be that the person was irresponsible with the millions they made from their fame. But, like with most news stories, there is usually more to it than what the headlines read.
There are certain points in a person's life where a turning point can be felt and seen, both by the individual and those around them. For many it is when they graduate from college or have a child. For others, a major promotion or the death of a family member can change a person's life. Whatever the event is, the individual knows that from that point on their life will not be the same.
Many of our Escondido readers have probably been encouraged by the signs of economic recovery throughout the nation - even if the signs are modest. While the unemployment rate admittedly remains stagnant, consumer confidence seems to be rising. When this happens, people are more apt to start spending money again. However, according to a recent article, this may lead to more Chapter 7 bankruptcy filings.
Most of our Escondido readers know that the bankruptcy process can be different for individuals and businesses. Many businesses will try to go through the Chapter 11 bankruptcy process, which allows the company to attempt to reorganize the business and consolidate debt in an effort to remain in operation for the long term. Individuals, on the other hand, often prefer the Chapter 7 bankruptcy process, which allows a debt holder to liquidate their assets in an attempt to pay off creditors. Any debt remaining after this process is complete is usually discharged. However, what many people may not realize is that Chapter 7 is also available to businesses. But, the unfortunate reality is that when a business files for Chapter 7 that is usually the end of the enterprise.
There are many reasons why individuals and families throughout the country end up in tough financial situations. The economic downturn of recent years has left many people who were formerly on solid financial ground with a whole litany of concerns, and those who weren't fortunate enough to be in a good position to begin with went through even tougher times. Whether it is because of an unexpected medical condition or reliance on credit cards, for some the ultimate result to their financial distress is to file for bankruptcy.