Bankruptcy and How to Get Out of It Nathan Gruss, Mitch Yuncker, Landon Iserhoth, Nick Moeggenberg

Signs of Debt Problems/Overspending You max out your credit cards and pay only the minimum. You pay bills late. You raid your retirement account. You use payday loans. You borrow from friends and family.

Bankruptcy Chapter 7 bankruptcy is a liquidation proceeding in which the debtor's non-exempt assets, if any, are sold by the Chapter 7 trustee and the proceeds distributed to creditors according to the priorities established in the Code. Bankruptcy remains on credit score for ten years after the date filed. Chapter 9 may only be applied to municipalities such as cities or towns and allows for their reorganization. Chapter 11 is almost always used to reorganize businesses but may be used by individuals as well. Chapter 12 is used exclusively to adjust the debts of a family farmer or family fisherman. Chapter 13, you must design a three- to five-year repayment plan for your creditors. Once you successfully complete the plan, the remaining debts are erased. Bankruptcy remains on credit score for seven years after the date filed. A lawyer is not required but it is highly recommended when filing for bankruptcy.

Debt Collection Debt Collectors - Businesses that collect debts for creditors Allowed to - Sue a debtor in civil court Garnish wages Contact you from 8 am until 9 pm Cannot - Harass debtors Produce false statements Contact you at any time before 8 am or after 9 pm

How to Avoid Bankruptcy Contact creditors and try to work an adjusted repayment plan Contact a non-profit financial counseling program Seek other non-profit credit counseling programs offered through work, university or credit unions

How Job Loss can affect you financially It forces you to watch your spending Resist the temptation to use your credit card Make a six month unemployment plan and follow it Adjust your expectations

How Marriage and Divorce Affect you Financially Can allow a person to share their spouse’s health insurance policy Allows a greater chance to obtain a loan Divorce Possessions, money, financial assets, and debt are divided between the former spouses The biggest financial burden is felt during the 1st year

How Death of a Spouse Affects You Financially Make sure all financial records are organized and that retirement information is shared between the spouses Arrange funeral expenses Inform friends, family, and spouse’s employer of the passing Social Security provides an income for the family of the deceased worker

Methods or strategies to pay off debt Stop the “bleeding” Conduct a thorough budget review Seek out help from creditors Go to a credit counselor

Open Accounts after paying off debt Keep the card Temptation to use it again High interest rate Identity Theft Cancel the card Negative bump on credit score (1 year) Can prevent you from getting a job Insurance rates go up Mortgage

Financial Counseling Trusted individuals helping you get out of debt and secure your financial future. NFCC (National Foundation for Credit Counseling) & GreenPath GreenPath is a non-profit organization. Debt counseling is free. Most cases through NFCC are either low or no cost at all. Look for help ASAP!

Sources https://www.moneysmart.gov.au/life-events-and-you/life-events/losing-your-job https://www.gobankingrates.com http://www.bankrate.com/finance/debt/ways-to-get-out-of-debt-2.aspx www.investopedia.com/terms/c/chapter9.asp https://www.nfcc.org/our-services/bankruptcy-counseling/ www.moranlaw.net http://www.greenpath.com/how-we-can-help/debt-counseling http://www.thesimpledollar.com/to-close-or-to-not-close-a-paid-off-credit-card/ www.nolo.com/legal-encyclopedia/chapter-12-bankruptcy-farmers-fishermen.html

Sources Cont. www.uscourts.gov/services-forms/bankruptcy/bankruptcy.../chapter-13-bankruptcy-basi… https://www.policygenius.com/blog/marriage-finances/ http://www.sfgclient.com/single-post/2016/10/25/What-to-Do-Financially-When-a-Spouse-Dies

Bankruptcy can be unBEARable