Make It Funky Business Sales

As much as possible all of us do not want to be in the position where we can’t pay off debt.  It is definitely one of the worst things that could befall a fellow human being.  I really felt bad for my neighbor, seeing his furniture and appliances being for closed for failure to pay mortgage.  Apparently, he owed a huge amount of money on his creditors and it was one of the ways to keep up with his payment.  It is really sad to see his nice things being stripped away from his home.  The neighbors hope that his house would not be auctioned because my neighbor is kind of old and where would he go after if his home was also being taken away from him.
Flawed Bankruptcy Law

I was young when I witnessed that incident.  Looking back I realized that he could file for a chapter 13 which is bankruptcy.  It should be the last resort so that his properties would not be auctioned.  However, after having looking into the subject of bankruptcy I realized that it is not as full proof as it is intended to be.  There are a lot of strings attached.  Requirements have to be fulfilled before you are eligible.  Like you have to be approved by an accredited credit counseling agency and it should be filed within 180 days.  Besides that there is a court proceeding.

The lesson I learned from what my neighbor experienced is that it is very difficult to get help from agencies which are supposed to protect average citizens.  In the payment for your bankruptcy the debtor needs to hire a trustee for handling the payments.  It means an additional expense for the debtor who already has a difficulty coping up with payments.  The other thing is that they have to pay off the lawyers services.  Chapter 13 bankruptcy has payment options of three to five years.  Imagine a debtor paying for the services of the lawyer and trustee for the years of service.  It is bound to fail in the end because most of the debtors are average or even low income earners.  How could they keep up with the existing payments?  To make matters worse giving them additional burdens like attorneys fees and expenses for the trustee.  An extra expense which could span the same as the years payment in your bankruptcy plan.

Law makers should reconsider reviewing the law on bankruptcy.  It needs to be scrutinized and if possible propose a better law than the existing one.  The law which supposed to be a way to help get out of debt is the same law which makes debtor even more in debt.   It is supposed to be a safety net.  However, as it is now it is more like adding quicksand to the hole which the debtor is already in.  I do understand that a debt made has to be paid but it should be a way that benefits both parties.  Both parties would be at the losing end if the debtor eventually could not pay his remaining debts.  That is why there is a need for a new system of payment which would make it easier for remuneration for debts.