Friday, December 23, 2011

Filing Bankcruptcy may be his only option

Exit to Bankruptcy?
A very close relative lost his job two years ago. He was jobless for 15 months. As a result the family savings and the college fund for his two college-bound kids had been depleted. His wife of 27 years filed for a divorce. He hired a lawyer for the divorce proceedings, and as a financial adviser. The lawyer advised him to file for bankruptcy. The value of their house went down the drain. The house has been on the market for 10 months. There are no buyers. Since he can no longer afford to pay the mortgage payment, his lawyer advised him to file for bankruptcy, possibly saving the house from foreclosure. He may be able to get rid of his second mortgage, also. Filing for bankruptcy is may be his only option to have a fresh start and start a new life after his divorce.

In my generation, filing for bankruptcy is taboo and a social disgrace. It was also a symbol of failure and weakness. Today, however, this is no longer true. Filing for bankruptcy has become cool and is the norm. It is the only thing to do in order to survive in today's economic climate. A bankrupt person appears to be the champion in this economic war across the nation and in the whole world. According to the latest news, tens of thousands bankruptcy cases are filed each year in the US. Individuals are not the only ones filing, but also small businesses and big corporations.

Famous people including Donald Trump have filed for bankruptcy. Other famous personalities that have filed for bankruptcy are Michael Jackson, Willie Nelson, Debbie Reynolds and a few other celebrities.

Corporations that have filed are Delta Air, K-Mart, Paramount Studios, Pacific Gas and Electric, Trump Hotels & Casinos and a few others.

The latest notorious case is Solyndra, manufacturer of solar panels. The case went all the way to the White House. The case has prompted congressional scrutiny of President Obama who praised the solar panel maker during his visit to their manufacturing facility last year. The company is currently under investigation by the Federal Bureau of Investigation over the $535 million federal guaranteed loan in building their manufacturing facility in Freemont, California

My relative really does not want to file for bankruptcy. However, he has no choice in today's economic climate. Luckily he found another job three months ago, but it was too late to save his 27 years of marriage.

Do you know of a relative or a friend who has filed for bankruptcy just recently?

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