The Decline and Fall of Chapter 7 Debt Relief Bankruptcy

Though countless articles and news programs around the United States continue to

examine the fading impact of governmental consumer support following the 2005 legislative evisceration of the federal code formerly promising financial protection to all legal residents of this country, mass recognition of the new debt relief realities has been irritatingly slow to take hold. That said, we are yet again compelled to as strongly as possible advise against what still seems to be the reflexive choice shrugged by a plurality of twenty first century American borrowers fatigued by seemingly immovable credit card debt: Chapter 7 debt relief bankruptcy. While a slim fraction of our woefully destitute citizens may indeed be most effectively served by throwing themselves on the mercy of their state court trustee, the odds are fiercely stacked against middle class consumers' attempts to even qualify for the program as currently structured, regardless of credit card debt sums or other unsecured loans.

After personally witnessing hundreds of families destroy any hopes that they may have had of effectively and painlessly flushing away credit card debt, we quake in horror whenever an economically stable head of household files bankruptcy paperwork with the state clerk before consulting with a single professional representing one of the many competitive debt relief approaches. Even if found eligible to begin what has become an achingly elongated process, you might well find the elimination of overextended borrowing through the bankruptcy cure rather worse than the credit card debt affliction once officers of the court have finished raiding your home for any goods of theoretical value, as designated by the Internal Revenue Service estimations. Of course, even if your vehicle or television has been confiscated for public auction, you'll be able to borrow funds for another one in just ten to twelve years, depending upon the state, once evidence of bankruptcy debt relief falls off of your credit report.

Moreover, as if all of that wasn't bad enough, the complexities of twenty first century bankruptcy protection as much as insist that any borrower without a nose for financial matters or bureaucratic documentation hire an attorney specializing in both local and federal government statutes. Even if the filer has the training to pull off the declaration absent professional assistance (or the desperation borne of abject poverty to at least try his or her hand at completing the petition), borrowers who wish to guard their possessions against court mandated seizure and auction would be foolish to assume that any debt relief amateur could bob and weave through the state and federal property exemptions to save family heirlooms or treasured keepsakes from the long arm of the trustee with anywhere's near the same likelihood of success.

Once again, we will sadly admit that Chapter 7 bankruptcy may indeed be the best potential (or, at the least, the only conceivable) form of debt relief laid open to certain sorts of consumers absent any income or estate or hope for a brighter future. However, the largest slice of American debtors ordinary, hard working middle class families that found themselves owing high interest revolving debt burdens that they couldn't possibly compensate or, most tragically, explain turns to Chapter 7 bankruptcy protection without ever learning the first thing about the other debt relief solutions that might be in order, given their personal relationship to credit card debt burdens and ability to repay.

The Decline and Fall of Chapter 7 Debt Relief Bankruptcy

By: Cole

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