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While Rome is burning, all Americans care about is their belongings and how much of it they can hoard. This idea is embedded in modern society. It starts with young children learning my word. I was raised in a different generation and beat myself up if those words came out of my mouth. Now the new parents think their little prince/princess can do no wrong and it’s cute. This behavior carries over into the teen years where a kid gets their driver’s license and they have this crazy idea that they have to have a new car. Well every other child is given one, why shouldn’t they? Then it’s time to go to college and it’s not enough to go to a junior college, but a prestigious four-year university is more in line with the way they were raised. This my friends is the entitlement generation and it is all about self gratification and amassing more stuff. Instead of going into eternal debt, the question these kids should be asking themselves is, is college really worth it? In America today, this entitlement generation is creating a new bubble, the student loan bubble. In 2013, student loan debt exceeded $1 trillion and with no jobs to help these graduates pay, this has created a dangerous bubble that is on the verge of popping. Currently, $124 billion of this debt is now more than 90 days past due. But most kids don’t understand that they can’t even file bankruptcy on this debt later in life if they need to. Sure, bankruptcy may be in their future, but this debt will follow them forever. So one thing is certain, after bankruptcy he will have his education and his debt, so he doesn’t have to worry about losing out in the least.
In this self-absorbed generation, these people will try to avoid filing bankruptcy at all costs because they fear that they will lose all their wealth if they file. In truth, this is one of those things that should be filed under the myths and legends of bankruptcy filings. I believe more corrupt creditors and debt collectors like to tell stories to people about what would happen to them if they file bankruptcy, This may be one of those stories that is told, because they know that if someone files, they won’t even be able to contact that debtor. If they can intimidate debtors, they’ll keep making minimum payments on their loans until they can no longer afford it. Even though many of these people shouldn’t be clinging so tightly to their belongings, it is rare for an individual to be wiped out in a bankruptcy filing. When Congress created bankruptcy they needed to come up with bankruptcy exemption laws that would allow a person to keep a generous amount of property or else the person would not get the fresh start that bankruptcy promises.
Over the years many Americans have exercised their right to file bankruptcy because of what happened to the economy after the real estate bubble burst. Those filing for bankruptcy can be assured that they are not going to lose all their assets when they file. The 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 wrong. In today’s economy, the trustee will weigh the cost versus the reward when taking on any non-exempt property. Once again, it is a good idea to hire a bankruptcy attorney to prepare the bankruptcy petition because they will know the code inside and out and will be able to protect the maximum number of assets in the filing. There are two types of bankruptcy exemptions that a person can choose from, the first is the federal exemptions that are very common, the second is the state exemptions that most individuals choose. Even though bankruptcy is under federal law, each state has its own bankruptcy exemptions and laws added to the code. The reason states have their own bankruptcy exemption laws is that sometimes the property can be area specific. For example, there may be an exemption for protecting a tractor in Kansas that would not apply to someone living in New York City. Overall, it is still best to allow the bankruptcy attorney to decide which exemptions to use.
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