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

2. 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.

3. 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.

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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

11. 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!

12. Sources

13. Sources Cont.

14. Bankruptcy can be unBEARable