As a society, a lot of our economy is propelled by the availability of credit. All institutions involved in the lending of money have insured themselves for the losses if debtors were to default on the loans made to them. While these lenders likely won't admit it, we all pay for this “insurance” through an increase in interest rates, because let's face it, if there was not risk of default, rates would be significantly less.
There are different ways of managing debt that has become over burdensome. Many creditors are willing to negotiate payoff of the debt for less than the amount owed. This is done through skilled negotiations with the creditor or their collections agent. Unsecured creditors are often willing to negotiate knowing a bankruptcy could result in no payment being received at all.
Our Founding Fathers recognized the importance to regulate the manner in which debts were collected in the United States. The United States Constitution (Article 1, Section 8, Clause 4) authorizes Congress to enact “uniform Laws on the subject of Bankruptcies throughout the United States”.
The United States Bankruptcy Code is codified in Title 11 of the US Code. Chapter 7 and Chapter 13 of Title 11 contain the provisions for the more common forms of a personal bankruptcy (other forms of bankruptcy are not covered in the Filippi Law Firm's areas of practice).
If you've found yourself in a position where your debt has become too much to handle, allow the Filippi Law Firm to step in and lighten your load. Contact us today to schedule a consultation and feel the relief of having a professional in your corner!