Since the bankruptcy law overhaul in the year 2005, there has been a forecast of reduction in the number of Chapter 7 and Chapter 13 bankruptcy filings. The Federal Reserve Bank of New York in a report states that this condition could be a trend. On the other hand, it also indicates, that filing for bankruptcy is not as negative and bad as believed by the public. The lack of understanding amongst the U.S. public about the way bankruptcy works is mainly the reason for the forecast of a decline in bankruptcy filings.
There’s more to the same report! For those people who consider that being in insolvency is better than bankruptcy, they stand to lose their retirement savings. Not only this, but their creditworthiness will also not scale up high when tests are conducted to assess them. This would land them in conditions where they are denied lines of credit from the financial institutions in the country.
Isn’t that surprising? Yes!
Filing for bankruptcy is seen as a strategic move by the debtor. It reflects on the capability of the debtor to address his poor economic conditions and take appropriate steps to mend it. The report recounts the fact that the debtors who have filed for bankruptcy benefit from large-purchase credit and have better accessibility towards funds.
The misconceptions around the bankruptcy processes, that it is too difficult to handle and that it costs a lot, have been continuously propagated by the debt consolidation companies. For them, their goal is to prevent the consumers from filing bankruptcy. The debtors who fall prey to these suffer from heavy debts and are able to make very minimal monthly payments towards them.
Seek the services of a renowned company like Recovery Law Group, who will work with you to start assessing your financial condition from the roots. They conclude on your capability towards paying off debts and will advise the course of action. They work alongside several clients in Los Angeles and Dallas regions for Chapter 7 and Chapter 13 bankruptcy cases. If you are based in one of these two cities, Recovery Law Group is just a phone call away! Call them at 888-297-6203 for an appointment!