Persuasive Essay On Bankruptcy

821 Words4 Pages
Sometimes, payday is the least enjoyable day of the month. As you open your paycheck, you realize that it will barely cover your major payments. Mortgage costs, rent, car payment, insurance and other bills can quickly chip away at your paycheck. With so many costs, saving money seems like an impossible dream. Unfortunately, your bill-paying dread is a common experience. An estimated 38.1 percent are currently in debt. In total, there are 1.2 million Americans who have to file for bankruptcy every year. Some people have to file for bankruptcy because of marital problems or due to overextending their credit. Other people run into problems because of extensive medical expenses or unemployment. You cannot always control things like medical bills…show more content…
It is a viable way to contain relief, but there are some things that you should know in advance. Each bankruptcy has to follow the rules, so you need to educate yourself about the process before you file. 1. Do Not Cash Out Your Savings Once you realize that you will be filing for bankruptcy, you may be tempted to cash out your savings. Some people do this to hide money from their creditors or bankruptcy trustee. Unfortunately, this plan can backfire terribly. If you are caught trying to cash out your savings, you could face criminal charges. If you are convicted, you will have to deal with financial ruin and a prison sentence. The courts may let you keep a part of your savings anyway, so do not risk your freedom for extra assets. 2. Be Careful About Transferring Money or Assets Filing for bankruptcy can be terrifying. Many people are terrified that they will lose everything that they have. Because of this, they panic and transfer their assets to other people. While this might temporarily save the assets from the bankruptcy process, it will not work for long. You have to provide information about your current or expected assets when you file for bankruptcy. If you try to hide these assets in any way, you are breaking the law. As a result, your bankruptcy filing may be denied. Worse still, you could face criminal
Show More
Related

  • Economic Recession Theory In Economics

    812 Words  | 4 Pages

    cycle contraction which results in a general slowdown in economic activity. Macroeconomic indicators such as GDP (gross domestic product), investment spending, capacity utilization, household income, business profits, and inflation fall, while bankruptcies and the unemployment rate rise. In the United Kingdom, it is defined as a negative economic growth for two consecutive quarters. Recessions generally occur when there is a widespread drop in spending (an adverse demand shock). This may be triggered

    Read More

More about Persuasive Essay On Bankruptcy

Open Document