2. While Rome is burning, all Americans care about is their stuff and
how much of it they can accumulate. This idea is embedded in
modern society. It begins with little kids learning the word, mine. I
was raised in a different generation and if that word came out of
my mouth I got the tar beat out of me. Now the new parents think
their little prince/princess can do no wrong and it's cute. This
behavior has carried on into the teenage years to where a kid gets
their driver's license and they have this crazy idea that they are
owed a new car. Well every other kid is given one, why shouldn't
they?
3. Then it's time to go to college and it's not good enough to go to junior
college, but a prestigious four-year university is more right in line with the
way they've been raised. This my friends is the entitlement generation
and it's all about self gratification and gathering more stuff. Instead of
going into eternal debt, these kids should be asking themselves the
question, is college really worth it? In America today, this entitlement
generation is creating a new bubble, it's the student loan bubble. In
2013, student loan debt surpassed $1 trillion and with no jobs to help
these graduates make payments, it's created a dangerous bubble that is
on the verge of popping.
4. Currently, $124 billion of this debt is now over 90 days past due.
But most kids don't understand is they can't even file
bankruptcy on this debt later in life if they need to. Sure
bankruptcy might be in their future, but this debt will follow them
forever. So there is one thing for sure, they will have their
education and its debt after filing bankruptcy so they don't need
to worry about losing that at least.
5. In this self absorbed generation, these folks will try and avoid filing
bankruptcy at all costs because they're afraid that they will lose all
their property if they file. Truthfully, this is one of the things that
should be filed under myths and legends of a bankruptcy filing. I
believe the more corrupt creditors and debt collectors love to tell
people stories about what will happen to them if they file bankruptcy.
This might be one of these stories that are told, because they know
if a person files, they will no longer be able to even contact that
debtor. If they can make the debtor scared, they will continue with
minimum payments on their debts until they could no longer afford
it.
6. Even though many of these people should not cling so tightly to
their belongings, it is rare for a person to be wiped out in a
bankruptcy filing. When Congress created bankruptcy they
needed to come up with bankruptcy exemption laws that would
allow an individual to keep a generous amount of property or else
the person would not get the fresh start that bankruptcy promises.
7. Over the last few years many Americans have exercised their right
to file bankruptcy because of what happened to the economy after
the real estate bubble burst. People filing bankruptcy can be rest
assured that they are not going to lose all their property when they
file. This idea that the bankruptcy trustee wants to come over to the
filer's house with a big truck and take everything to the swap meet
is completely false. In today's economy, the trustee will weigh out
the cost versus the reward when taking any un-exempt property.
Once again, it's a good idea to hire a bankruptcy attorney to
prepare the bankruptcy petition because they will know the ins and
outs of the code and be able to protect the maximum amount of
property in the filing.
8. There are two types of bankruptcy exemptions that an individual can
select, first is the federal exemptions which are very generic, next is
the state exemptions which most individuals choose. Even though
bankruptcy is under the federal law, every state has its own
bankruptcy exemptions and laws added to the code. The reason
states have their own bankruptcy exemption laws is because
sometimes property can be region specific. For example, there might
be an exemption in Kansas to protect a tractor which would not apply
to someone living in New York City. Overall, it's still best to allow a
bankruptcy attorney make the decision of which exemptions to use.
