Bankruptcy follows debt as sure as
night follows day.
After deleveraging in the aftermath of the last U.S. recession, Americans have once again taken on record debt loads that risk holding back the world’s largest economy.
Household debt outstanding — everything from mortgages to credit cards to car loans — reached $12.7 trillion in the first quarter, surpassing the previous peak in 2008 before the effects of the housing market collapse took its toll, Federal Reserve Bank of New York data show. To put the borrowing in perspective, it’s more than the size of China’s economy or almost four times that of Germany’s.
What could go wrong?
For most Americans, whose median household income is lower than it was at its peak in 1999, borrowing has been the answer to maintaining their standard of living.
When something cannot go on forever, it doesn’t.
Lowering the standard of living is the way to go, rather than borrowing, in the hope that things will turn around, income will go back up.
In fact, you are better off living BELOW whatever your income justifies. Then, if your income goes down, as it will for most of us, some time or other, you are not thrown into default because you need all your income for expenses.
Obviously, that is a minority opinion.
How Far In Debt Can I Get?
Well, this one may be a record.
I suppose the answer is, as long as you can get people to keep lending you money, your debt load can increase.
A pair of Spokane doctors may be able to settle their $191 million bankruptcy by paying as little as $130,000 to be split among more than 8,000 creditors.
$191 million. I wonder what they have to show for it?
The wording is deceptive. They filed Chapter 7, liquidation, bankruptcy, seeking a discharge of their debts.
Their trustee found some assets they tried to hide and/or shuffle around, or “forgot” to list.
Among those findings, Munding learned that the Ravasias withdrew about $14,485 from bank accounts just days before filing bankruptcy; they paid about $46,000 on several credit cards that weren’t disclosed; and they failed to account for $494,500 worth of personal property.
Now, lying on your bankruptcy papers is perjury, because you are swearing they are accurate, like a tax return.
This is grounds for denial of your bankruptcy discharge, not to mention a federal felony that can lead to prison time
I can understand the trustee here compromising claims for payment from a retirement account that he cannot get, but he, or any of the creditors, seems to have grounds for a 727 suit to deny the debtors’ discharge as to all debts.
Easy to avoid this kind of mess: TELL THE TRUTH!