I know this still helps very little for the person that does not have $25.00 left over  for disposable income after they receive their paycheck. That is assuming they are receiving a paycheck.  If you live in Michigan and have been working since 2007 you are doing excellent in a state where the great lake state has led unemployment at 5-6% above the rest of the country on a continuing basis.

How much does it cost to file bankruptcy?

The actual filing fees are are in relation to which chapter of bankruptcy  you plan on filing for. In other words, the filing fees are different for a chapter 7 bankruptcy than for a chapter 13 bankruptcy. The easiest bankruptcy is a chapter 7 bankruptcy and it costs $299.00 to file your case with the U.S. Bankruptcy Court. If you are filing for a Chapter 13 bankruptcy which is more complicated  chapter you will have to pay $274.00 to file with the courts.

What other costs are associated with filing bankruptcy. Under the 2005 bankruptcy law you are also required to take a pre bankruptcy filing class and a post bankruptcy filing class. This means before you can ever file bankruptcy you must meet with a certified government agency to take a class before you can file. Several of these classes  can be taken online ; if you are married you and your spouse can attend the same class and not have to pay individual fees.  You can find cheaper agencies to provide these classes. However, I would plan on paying $100.00 combined ( $50.00 each) for the pre and post filing bankruptcy classes. The rest of the fees are really dependent on the attorney you pick.  If you are filing a Chapter 7 bankruptcy and you can afford to keep your home and cars I would go for a cheaper bankruptcy attorney. You need to be aware with  a cheaper the attorney comes a reduction in personal services and you  have less of a chance of them being their to hold your hand through out the whole process. In this case you should visit a bankruptcy forum to over come your apprehensions by sharing your experiences.  If you are filing a chapter 13 bankruptcy then you I recommend you pay the higher fee for a better attorney since this will require you to adhere to a payback plan and you need an attorney that will fight for you.

How can I pay for an attorney if I am already broke?

You should first meet with at minimum of 3 attorneys before you ever file. They offer free consults so this will not cost you anything. You need to think along these lines if I did not have to pay all these credit card bills how long would it take me to come up with 600-700 to file for bankruptcy. The reason you ask your self this  because the attorney will tell you to stop paying all of your creditors that are unsecured ( credit cards etc). You will then pay him or her a retainer fee of $200-$300 to begin sending all collection calls to your attorney. You will then save up the rest of the money you would pay to your creditors to pay off your attorney. Once your  attorney is paid in full you will pay the 299.00 or 274.00 to actually file your case.  You could take 3-4 months to save and pay for your attorney.  The goal is to pay the retainer to give the creditors a name and number they can call so they do not call and harass you.  If your filing a Chapter 13 you can include your attorney payments into your payback plan. So, you may not have to pay all the upfront fees to the attorney if you are filing a chapter 13 bankruptcy.

Chapter 7 $299.00

Prefiling class 50.00

post filing class 50.00

attorney cost 700-1500

Minimum to maximum cost to file bankruptcy is:  $1,099-$1,899 to file for bankruptcy

I hope this blog helped provide some peace of mind or some guidance with what to do next.  If you wish to  say thanks please feel free to link to our site using “pacer flags” as your keyword thanks and good luck

The individual or debtor filing Bankruptcy  by themselves or in a do it yourself bankruptcy ( filing Pro Se) or  through a bankruptcy attorney has the right to view their court records.  So, what does PACER stand for and what does it mean to the person filing bankruptcy in Michigan? P.A.C.E.R  is an acronyms for “ Public Access Court Electronic Records.  Notice the Public part of the word. My attorney told me I couldn’t gert access to pacer.  He was surprised a couple  months down the road when I informed him he ( or legal assistant) scanned someone elses records with mine when they uploaded my paper work to PACER.  

To find the pacer website all you need to do is go to Google and enter  PACER.  It will most likley be the first link returned from the search engine results page(below). Some people ask why would I want to look at my case online. My attorney has all that information. Well, your attorney may have all the infomation and is filing for you. However, you are ultimately responsible for filing the correct  information in accordance to the timetable set forth by the bankrutpcy court. That is, if you want a timely bankruptcy case.

 Once you have search and clicked on the link you should have the  PACER Service Center website (below) up.The next step gain access to your bankruptcy records is to registe on PACER. All you need to do is click on”register for pacer”. You will now have to enter all of your data. If you wish to gain instant access you will have to provide a credit card number. You may be able to register without a credit card. However, you will have to wait to receive access. I do not know how long it will take to provide access to your account online if you do not use a debit or credit card. I do know they do billing quarterly.

If you have registered already you can go back to the orginal You can either continue to scroll down or click on the Bankrupcy menu and click on “Pacer Links” (above). You will then arrive at the page shown below  that shows the statement  ”Billing Notice” You will see the courts listed above (Appeals, District, Bankruptcy, Court Home Page).  You can do one of two things. You can scroll down through the page until you reach the section or you can  just click on the  header on the page that says “Bankruptcy” to search for your state and Bankruptcy District.

The screen shot below already I had already scrolled to the beginning of  the Bankruptcy section. I am trying to find my state bankruptcy distrtics.  In Michigan there are two Bankruptcy websites. The Bankruptcy Court in the Eastern District and the the Bankruptcy Court in the Western District.

I found the the Western District website for Michigan and clicked on the link to go to the “Bankruptcy Court in the Western District”. This is where you will start to go from a federal website access to a local court website access. You can see this in the screen shot below.

On the screen shot above you will see “Western District of Michigan-Document Filing System. That is the link you click on right below the federal logo. You will now appear at the login screen shown below.  The login information should have been sent to you in the email you registered with. Here is where you enter logi information and password. If you did what I did when registering and used none as the “client code” you would enter none.

You  just completed the login?? This is where most people get confused. If you have been using the internet and computers since the 90′s you most likely know how to register at a website and the point was mundane. However, now that you have registered most people don’t know where to look to obtainin information on their Bankrutpcy Case.  Here is what you need to keep in mind you get billed for each page you look at in PACER. You get billed $.08. It does not seem like much but, the debt can build up quickly( sound familiar?)  :o) 

You see in the screen shot above the menu names: Query, Reports, Utilities & Logout.  When you begin looking at your case you will mainly be looking at the “Class register” or the  “Docket Report”  Your PACER bill could skyrocket when you start to perform general Queries or a general query. Try to always make sure if using a query you input your bankruptcy case number. This will prevent y0u from getting a bunch of  8 cent pages that are not related to your case or are just generally useless.

 Once you have decided  which report to run. Whether it was the  Docket Report or Class RegisterYou will now begin to see your case information.  I recommend looking at your Docket for the first time. You will want to download all of your case information. You plug in your case number only (09-123456789). I recommend  for the fist time looking at your case you use the the bottom menue to do a “Sort by” oldest you will see some entries click on the “numbers”. Depending on your case you could have 30-60 pages  or $4.80 for 60 pages. This will open up your court forms  in adobe pdf format. Save this to  a folder on your desktop called orginal bankruptcy documents or filed bankruptcy documents. You won’t need to look at these again if all the paper work is in order or has been filed correctly the first time you or your attorney filed the paperwork.

One of the reasons to look at PACER is to see if there are any Bankrupty Flags. The screen shot about showed all the individuals bankruptcy information such as bankruptcy attorney, bankruptcy trustee, which court the bankruptcy case was assigned to  the filing date. You will will also notice in the upper right hand corner some  words ( meanso, reaff, LN,debted). These are flags or quick notes on the case.  This is a a typical Chapter 7 No asset bankruptcy case. MEANSNO  means their is not presumption of abuse that could be found. DebtEd typically means the the debtor or person filing bankruptcy has not taken their  second bankruptcy class. LN means the 341 meeting was held in Lansing Michigan.  The REaff means the person or the court is waiting for the signed reaffirmation aggrements. These type aggreements tpically happen when the person filing bankruptcy promises to keep the property and keep the debt rather than discharging it in Bankrutpcy.Here’s how much I was charged. You get this for each time you load a page. 

The final two screen shots are from the Query section allows you to look at the case summary, Docket report, status. These are worthwile to look at. The downside to PACER is theire are several ways to look at your case.  Just remember to always enter Your case number and it should keep your charges down to a mininum. 

The final screen shot below is a quick look at  how much I was charged to look at 31 pages I believe this was my initial  page it cost $2.48 You should also notice the “download documents” button” here is where you can download your bankruptcy documents and save them.

When filing Bankruptcy you have very little control over your case, some people may be O.K with this others are not. You rely on your attorney to collect the information and then to tell you what is going on with your case. You wait for the court to set the meeting dates. You wait for the court to make their requests and inform you of discharge and when your case is closed. You depend on your bankruptcy attorney or lawyer to  submit all the required paperwork. If you have one thing missing the court can dismiss your case. You will then have to pay to file again. Attorneys take on many cases and rely on legal aides to do most of the paper work.  If you check pacer you have some control over your case and you are able to notify your attorney that there is a possible issue with your case by checking PACER. Remeber they are human and make mistakes. Using PACER to monitor your bankruptcy case helps you and the bankruptcy attorney while providing credibility to your knowledge of the bankruptcy process.

Why File Bankruptsy? Simple, so you can start a new life free of debt and with ruined credit.  There is no simpler way to describe why to file bankruptcy in Michigan. You can’t have one without the other. I believe now is the perfect time to file bankruptcy in America or for this particular blog filing bankruptcy in Michigan. Why? Everyone is feeling the pinch and people are losing their jobs. People have become more accepting of people filing bankruptcy.

I looked at the current market conditions as an opportunity to file my bankruptcy inLansing to get my fresh start. I noticed people in the same position as me and was struggling. I was making my payments. I was one of the fortunate people that bought my home on a fixed rate and was able to keep and maintain my payments. I did not have to worry about the creditors calling me at work or threatening letters of about foreclosures sitting in my mailbox.

We have Oprah bringing gurus on her show to talk about how to get out of debt. Yes, chances are you can get out of debt following these programs and taking their advice. However, what will be the additional cost stress, health loss of savings? Chances are if you at the point of filing for bankruptcy you have been suffering with stress long enough. People let their pride get in the way of admitting their mistakes or acknowledging they need help. You have financial gurus who would prefer you continue paying on your debt for the next 10-15 years. Yes, paying on your debt and not saving or investing. The market is ripe to admit your mistakes and begin saving and monitoring your spending habits. If you’re a Michigan resident in a state where the unemployment is the highest in the country and it is continuing to grow. You should be looking at how secure your job is and where you are at with your financial future. It is better to hire your own bankruptcy attorney or find a bankruptcy attorney in Michigan while your back is not against the wall. You can start out by searching online for a bankruptcy means test to tell if should be looking for a Chapter 13 bankruptcy lawyer or a Chapter 7 bankruptcy Lawyer. When you start educating your self about bankruptcy it will make it that much more easily to claim bankruptcy after you have received or found the information on bankruptcy you need to be comfortable with the idea of claiming bankrutcy. Bankruptcy Forums are also useful place to find information and ask questions. If you have debt and making the minimal payments on credit cards and that is all you can afford you should really start looking into whether or not you need to file bankruptcy. You also need to remember debt is debt, it will not go away with home equity line of credit (HELOC) or some other way to refinance your debt. If you want a reality check and you have low interests credit cards take your interests and jack the rate up to 21-22% on most of your cards and see if you still can make your payments. If not, you need to consider claiming bankruptcy just like I did when filing bankruptcy in Lansing.

Letting emotions control your decision on whether to file or not.

Bankruptcy is a financial and business decision. You can either not file and stay in debt or file and start rebuilding and getting on with your life. Emotions are usually tied to possetions and the feeling of financial failure. Don’t compound your financial stability by refusing to honestly look at your situation. Don’t make a bad financial decision by being in denial and facing the truth.

Withdrawing money out of your retirement  to pay on debt.

This is huge and preventable. Chances are if you are resorting to pulling money out of these accounts you are in trouble and should really consider filing. Your retirement accounts such as a 401K  is protected under bankruptcy law. Don’t take money out.

Taking a second Mortgage on your home.

If you have a large amount of debt that you cannot manage, taking out a 2nd mortgage may only delay the inevitable, and you will still have the 2nd mortgage to pay. This will end up with you either having a large payment that is difficult to manage or losing your home.

Hiding assets

Some people try to be smart and transfer property out of their names to avoid losing property or beloved possestions. Don’t do this, the trustee will find out and still take the property or force it to be sold. Additionally you don’t want to get nailed for trying to defraud the Government.

Keep charging on your cards  or take out a loan after you decide to file bankruptcy.

Once you decide to file bankruptcy you must stop charging on your cards. Same with borrowing. Once you decide to file bankruptcy no more debt. Any charges / debt you incur may not be discharged in your bankruptcy. If you continue to use your credit cards after seeking advice from an attorney regarding bankruptcy. You may get nailed for whatever you charged and will have to pay them back.

Not Listing all of your property when filing bankrutpcy.

You are required to sign a petition when you are filing bankruptcy. If you forget to list something it can be perceived as fraud. You don’t want to make a situation worse by hiding your four wheeler or the new diamond earings you bought your wife or girlfriend.

Meeting with only one attorney

Several Bankruptcy sites leave this peice of advice out their services. You would’nt visit one store to by your plasma T.V. or visit one dealership to purchase one car. The same goes with an attorney. When visiting  several attorneys you get a chance to build up confidence. If something goes down you know you want someone you trust and have confidence in.

Not getting all  the necessarry paper work prior to filing.

You should get atleast 2 years of credit card statements prior to filing bankrutcy. Chances are you won’t use them. However, if you are close on the means tests and you have allot of unsecured debt and nothing to show for it .  The U.S Trustee may want to see how all the debt was accumulated with nothing to show for it. Try asking for credit card statements after you filed for bankruptcy. The trustee will have to get a subpenoa to get them. Save yourself the headache and do it before you stop paying alltogether and filing. Sometimes you can print them from online. However, once you stop paying and file. Your online access is locked out and you wont be able to access them.

Not visiting a Bankruptcy Forum

Life becomes easier when you can talk to people in the same position as you. Forums are great sources for information and you are able to share your experiences. You are also able to ask questions and receive personal( not legal) advice from people who have been there done that. Only people who are filing or have filed will understand you. Attorneys are  not there to  treat you emotionally

Not learning from filing bankrutcy

People become attached to their FICO scores and where/what they were prior to filing bankruptcy. Scores do not define who you are. If you save and invest wisely your score will return. Do not make bad decions  trying to raise your credit score. Time and paying your bills on time fixes credit, nothing else. It’s important for people to learn to budget after filing bankruptcy and also learn to invest wisely. One of the benefits of  todays current economy is young people can learn from mistakes create their own investment plan that is recession proof. I would call it: My Recession Survival Guide, where you list the resources that were least effected during the past 5-8 years and how the current economy affected everyones 401K and retirement plans

If you have decided to walk away from your home and think you have no other options but to bail on your home that you owe more than it’s worth, you may want to read this.

Wouldn’t it be much easier to save your home if you only had a first mortgage and no other payments? What if you could effectively wipe out $50,000, $100,000 or $200,000 of what you owe on your mortgage? Also, if the market turns around, think of all the equity you could build back up years from now?

For homeowners who have taken out a second mortgage on their home, facing financial difficulties can be particularly challenging. In most cases, a 2nd mortgage reduces your home equity to a very small amount, leaving you vulnerable to the whims of your lenders. In cases where real estate values have declined, as we are seeing in most markets today, there are strategies that you can use to protect yourself from excessive debt.

Current bankruptcy law allows judges to approve the modifcation of the terms of certain debts, namely auto and student loans and second-home mortgages. In the case of second mortgages, if the value of the property falls below the loan amount, debtors potentially could reduce the balance of the loan to equal the current value of the property.

If the courts remove this 2nd mortgage, this is known as “stripping” the lien, “cram down” or “strip down,” which can also occur if the loan is secured by other collateral that is part of the filing or if the home is not your principal residence, or even if the payment structure on the 2nd mortgage falls heavily during the bankruptcy filing itself.

Lien Stripping Example:

Now, THAT IS POWERFUL tool for homeowners who are underwater!

Additional liens on your home beyond your initial mortgage, whether you have taken a second mortgage or just another related lien, could be negated in the case of a Chapter 13 personal bankruptcy filing.

Liens can be stripped off of the debtor’s assets in Chapter 11 or Chapter 13 when there is not enough equity in the asset, after deducting senior liens from the property’s current market value, to secure theunsecured in whole or in part, where the lien exceeds the value of the debtor’s property.

Section 506 of the Bankruptcy Code acknowledges that a lien is only a secured claim to the extent there is value in the asset to which it attaches.  To the extent that the claim exceeds the value of the collateral, that portion of the claim is unsecured.

In Chapter 11 or Chapter 13, even voluntary liens, such as mortgages and security interests, can be stripped down to the value of the collateral, with the exception of voluntary liens secured only by the debtor’s residence. Congress is currently considering changes to bankruptcy law allowing the modification of home mortgages

Despite the general rule, two exceptions may apply so as to allow lien stripping of a mortgage on a personal residence:

1. 1. Loans based on a home plus other collateral. Lien stripping is prevented only when the lien is secured “solely” by a personal residence. Court decisions have made it clear that when the debtor has given other collateral (in addition to the personal residence; e.g., office equipment) as security for the mortgage, lien stripping will be allowed. Thus, if you will be taking out a second mortgage or refinancing your home, you should consider offering additional collateral, such as furniture, as security for the loan. This can be done under the guise of seeking better terms from the lender, such as a lower interest rate.
   2. Some second mortgages. Many (but not all) bankruptcy courts follow a rule that makes a second mortgage totally unsecured if the first mortgage balance equals or exceeds the value of the personal residence. This exception will not apply in the case of a refinancing of a mortgage, since in a refinancing the new mortgage pays off the first mortgage. The exception is predicated on there being two distinct mortgages (a first and a second mortgage). For this reason, if you have the option of financing your business through a second mortgage or refinancing your first mortgage, the second mortgage may be the better choice, especially where the amount of the first mortgage is close to the value of the home.

In addition, remember that the general rule applies only to a lien secured solely by a personal residence. Thus, lien stripping will be allowed for a mortgage on a building used in a business.

While there is no assurance of how the courts will decide, depending on the terms of the original loans as well as the details of your filing, there are options for home owners with multiple liens on their home. This is because most additionally mortgages are unsecured for the loan, especially in the context of depressed home values.

While inflated home appraisals may have allowed you to take out an additional mortgage, it’s possible that your original home loan is now under water, in addition to the implications of your additional, second mortgage.

When the real estate market was much more active, lenders often side stepped the 20% down payment by allowing the borrower to get primary mortgage insurance. As a further step to bypass this, many borrowers took out a 2nd mortgage to cover the 20% payment, which led to the addition lien on the home – given market conditions, many buyers ended up with negative net financing, or negative equity, before they even made their first payment (and often did not have to provide any collateral).

Within Chapter 13 Bankruptcy law, section 11 USC 1322 can potentially allow you to forgo your second mortgage, under certain circumstances. If your second lien on the whole is unsecured, then when the value of your home drops belong the first mortgage deed of trust, the second becomes wholly under secure, which can be negated through a Chapter 13 filing.

The lien stripping program is available for individuals desiring to reorganize their debt using Federal Laws under Title 11 of the United States Code. The mortgage removal program can only be used in the context of a reorganization, often referred to as Chapter 13(see below).

If you own a home with more than one mortgage, you may be able to completely remove or “avoid” the second and subsequent junior mortgages from your home and county records, thus leaving only the first original mortgage!

To qualify for this defense, the court will generally require objective evidence that the home is appraised for less than the value of the initial mortgage, which can be obtained through a county property appraisal or through a third party certified appraisal that is accepted by the court. In an environment where home prices in most markets have fallen at least 30%, many borrowers may qualify.

Attorney Pernell Agdeppa sais this about this bankruptcy defense for homeowners; “Homeowners can file a Chapter 13 bankruptcy and can pay the various filing charges/fees (to strip a lien we must file a complaint against the second or junior lien holder(s)). In my opinion, the most critical aspect of this process is to carefully qualify each potential client to determine whether bankruptcy is their best alternative and make them aware of its lasting credit impacts.“

“While removing junior debt from their properties will help them financially, clients must also be capable of staying within their financial plan to fulfill their obligations of their Chapter 13 filing.”

Tax liens can also be stripped off in reorganization proceedings (Chapters 11 and 13)  to the extent that the lien does not attach to equity in property.  Tax liens can’t be avoided in Chapter 7 on the grounds that they impair exemptions;  if the tax is dischargeable in the Chapter 7, the bankruptcy court can determine the amount of the lien that is secured at the time of the filing. Payment of that sum entitles the debtor to the release of the lien.

 Ultimately, working with a qualified tax and real estate attorney or experienced real estate bankruptcy lawyer will help you present your case to the Federal bankruptcy court, so it’s important to get qualified legal advice in advance of any filings.

cite: loanworkout.org  Author Moe Bedard

Chapter 13 is one way to get yourself out of bankruptcy and still retain your possetions. However, with the unemployment so high and Michigan being primarly a manufacturing state; manufacturing is leaving quicker thancash from the state and federal unemployment budget. So, if your considering  Chapter 13 and your job is related to the automotive industry you may want to really try to find a way to file Chapter 7.

Several people( me included) think that the automotive industry will still continue thrive in Michigan. Yet, will workers in the automotive industry  still retain the same wage today as they have enjoyed for some time. Here’s the problem, it’s likely the days of paying 50k a year to put on parts will be gone. Now what do you do? You just file Chapter 13 and you are in a 3-5 year pay back plan. Then you find out you went from making $26.00 per hour to finding out the U.A.W agreed to lower hour wages to $15.oo. Now you have to either:

1) Modify your Chapter 13 bankruptcy or

2) try to Convert to a Chapter 7 bankruptcy.

Just as people that are expereincing forclosure and watching their equityin their home melt away;people are watching as the value of their vehicle drop. Most people  know a vehicle is not an investment. However, you expect your purchase to retain some sort of value. When energy/gas prices took off and people could barely afford to drive the SUV.. People couldn’t sell or get rid of them to buy the fuel efficent vehicles that GM, Ford or Chrysler had in show rooms.

 Is it really the automakers fault  people are upside down in their vehicles and people can get out of them?  

Congress is willing to bailout Wallstreet and make the automakers come up with a detail plan to make better vehicles. The point is. They alread had those plans but people are stuck in houses that they can not sell and vehicles they can’t trade in or sell for the amount owed.  

The plain fact is the United States has outsourced most of it’s manufacturing and what will affect detroit will also affect other industries. The U.S can be an entirely service oriented country and continue to be a world power. The sad fact with Walls street failing and Detroit Bankruptcies skyrocketing.. 2009 may spread out to other cities showing that Detroit still leads the way even if it is the collapse of  Detroit with unemployment and Bankruptcy.

Evaluate Your Income?

 The first phase in figuring out whether you can file for Chapter 7 is to quantify your “current monthly income” against the median income for a family of your size in your state(`you, spouse &kids. Determine your income. Your average income is the total income over the last six months prior to filing. This is what will help you determine if you’re eligible to file Chapter 7. If your income is less than or equal to the median, you most likely qualify to file for Chapter 7.

If your income is more than the median, however, you must pass “the means test” — another requirement of the new law — in order to file for Chapter 7.

Do You Have Enough Disposable Income to Repay Some Debts?

The purpose of the means test is to figure out whether you have enough disposable income, after subtracting certain allowed expenses and required debt payments, to repay at least a portion of your unsecured debts over a five-year repayment period.

Before you meet with an attorney you should do a search online for a free means test calculator to help you determine if you meet the qualifications to repay your debt.

You cannot file for Chapter 7 bankruptcy if you obtained a discharge of your debts in a Chapter 7 case within the last eight years, or a Chapter 13 case within the last six years.

A Previous Bankruptcy Was Dismissed Within the Previous 180 Days

You cannot file for Chapter 7 bankruptcy if a previous Chapter 7 or Chapter 13 case was dismissed within the past 180 days because:

·        you violated a court order

·        the court ruled that your filing was fraudulent or constituted an abuse of the bankruptcy system, or

·        you requested the dismissal after a creditor asked for relief from the automatic stay.

You Defrauded Your Creditors

A bankruptcy court cold dismiss your case if it thinks you have tried to cheat your creditors or concealed assets so you can keep them for yourself. Although you know you never intentionally defrauded your creditors you should be aware of what can appear as trying to defraud. Your cause could look like you tried to defraud and could mean you need to wait for 5- 6 months before filing. This is call bankruptcy planning.

Certain activities are red flags to the courts and trustees. If you have engaged in any of them during the past year, your bankruptcy case may be dismissed. Fraudulent activities could include:

·        unloading assets to your friends or relatives to hide them from creditors or from the bankruptcy court

·        running up debts for luxury items when you were clearly broke and had no way to pay them off

·        concealing property or money from your spouse during a divorce proceeding, or

·        lying about your income or debts on a credit application.

The Stigma

I recently read a couple articles about how the credit industry and large retailers in the past where also a part of emotional drivers  for the need  and the high importance to continue to pay your bills. They help form public opinion to the point people were more worried about paying a credit card bill on time than buying food for their table and family. Granted we also wanted to pay ontime to avoid the late fee.   So, they push  public opinion to reflect that a person is despicable or a low life because they are filing bankruptcy or were unable to take care of their personal finances. However, the multi billionaire or large corporation that is filing bankruptcy is making a business a decsion and it’s a shame they have to file bankruptcy. Maybe if the economy or the corporation had planned better they would not have to file bankruptcy.

Why is filing bankruptcy O.K. of them but not O.K of for the average working person?

Things are changing

People are now walking away from homes. Not just the person that lost their job or made a bad financial decsion. It is people that are highly educated. They have significant amounts of m0ney put aside for retirement. People are walking away because they have lost the value of what their home is worth. They are making individula business decisions based on their current situation. The reality has come that while large credit card companies are rasing interest rates from 7% to 29.99% because you were late on a utility bill, the individual has emotially disconnected and is now starting to make the same decisions. They are making the decisions at the detrament of corporate america, and corporate america is stunned and is starting to be affected.