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Filing for bankruptcy is the last option for people that are in financial crisis and want to get back on their feet. A huge percentage of people that file for bankruptcy – over 40 percent – are forced into it because of a serious health problem
If you do not have health insurance, a catastrophic illness such as cancer, can wipe you out financially. Even for many people with health insurance, the combination of premiums and deductibles, can put a major dent in their finances. For many the prospect of even buying a new car after bankruptcy is an impossible task.
The loss of a steady job is the second largest reason why many people have to file for bankruptcy. An abrupt loss of a job because of company layoffs, company outsourcing, or simply a company going out of business can very easily wreck the financial underpinnings of a family that is already knee deep in debt and practically living from paycheck to paycheck. Those who divorce have it even worse. It can lead to a situation of having to support two households instead of one and also potentially alimony payments.
It can be embarrassing knowing that your financial life can simply be condensed into a bankruptcy credit report. Unfortunately, the new bankruptcy law, which became effective October 2005 was basically written by the credit card companies. As you might expect, they changed the law to work in their favor and put in basically no provisions to protect citizens that may have fallen into the above categories.
Just a few month ago, however, the United States House of Representatives held a vote to limit the interest percent that credit card companies can bill their customers for.
Their decision was not doubt motivated by the growing anger that has been building up from their constituents who see the banks profiting from the misfortunes of customers. The vote was 331-92, one of the rare pieces of bipartisan votes that have been held recently.
For more information on chapter 7 bankruptcy information / articles, please visit David Hoyer’s website.