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Bankruptcy a growing problem in the US the total number of filings have jumped considerably over the last three years to more than one and a half million Americans.
My next guest has a way deciding what patient file bankruptcy or not when he coached -- how funny -- joins me now are right so.
Here's the deal with this decision there are planning -- people out there who were on the brink.
And it's not -- should I file they want to file they -- -- put some of the step behind so let's start with the people who.
Are on that tender hook when -- know whether to file right.
Well I think it boils down to obviously what your own individual circumstances are but -- really sometimes when you.
Should definitely pile and sometimes when you shouldn't and you know.
First of all let's start maybe with the people who are they -- I've got some savings in the bank you know I feel pretty secure with my job.
I'm -- got some bills but they're not really worried about it you know obviously -- -- -- bankruptcy there you really obviously should not.
-- the belts hit -- bill.
-- do what you've been doing.
Don't think -- to the people though who say I've got credit card debt not been trying to tackle this for some time.
And it's a little bit of a problem I've not been able to negotiate with my creditors.
The bills are going the wrong way they keep creeping up at the post there.
Declining or I'm not so comfortable a comfortable about my -- that we -- and I have no savings.
Think about your options bankruptcy -- marriage but I still don't think it's yeah.
Let me ask you this question because I think it's often very personal whether people decide to file bankruptcy or not -- met a family.
They had earnings of say 75000 dollars a year they had a 140000 dollars in credit card debt credit card debt they didn't own a home at the time.
So they didn't have any other big outstanding bills but their credit card -- was so high that a lot of people would have thrown in the -- -- said.
I'm done -- -- here right they didn't they didn't choose to.
But is there a certain argument to be made for the most logical thing is to get those debts -- race.
Right you know I've been in that same situation I had six figures were -- more than a decade ago I cannot paid off I didn't -- the bankruptcy route.
Penalize people morally or berate them and say all you shouldn't do this because there are some circumstances under which it's very appropriate.
If you look at your unsecured debts like credit card debt like this one family -- or maybe you have big medical debts that frankly you won't even be able to pay off and say.
Five to seven plus years.
I think it is time to start thinking about bankruptcy as a serious option.
It gets a lot more serious frankly if you've got creditors who are attacking you in different ways if your wages are being garnished.
If you have judgments against you if the threat a foreclosure is imminent.
If you don't.
Negative things are happening in terms of lawsuits.
Again in their bills that you cannot pay.
Medical -- credit card -- unsecured.
I think medical and it's a do very big reason the people go into it and not what reason that a lot people file bankrupt at the end today and you can't get everything -- there's alimony that's right.
School that if you have loans to the federal government loans aren't going to let it doesn't care Uncle Sam that's why you work taxes.
And federal federal and state taxes even -- -- things like child support and alimony and it's been ordered back court.
Wiping that out of bankruptcy so there are some things that.
People if your arm and that you still gonna have to pay what about mortgage debt because a lot of people out there are under water.
With their mortgages -- having very big problems filing bankruptcy would be a way out where there may not be another way I write a chapter thirteen bankruptcy is the one that could potentially stave off foreclosure and help you keep your home.
Some people up file chapter seven mistakenly thinking they're gonna save their home it does absolutely nothing.
Again I say some people are actually delaying the inevitable.
You don't want to file bankruptcy and then why the van foreclosure anyway.
Really take a look at your situation if it's a loss of income appear in the house that simply unaffordable in some cases it may be best to just let them.
The home goal in terms of trying to to -- short sale working out something with the bank except her as opposed to doing -- for.
A bankruptcy and ultimately winding up in foreclosure.
Great information thanks next time you're on the colors blue I know -- Let's switch it up Monday the ladies and -- that the fifth and our thanks what I great.
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