U.S. Reaches Debt Ceiling on August 2

CNNMoney reports that the United States has until August 2, 2011, until the U.S. Treasury Department will not be able to pay the bills without borrowing more money. However, at a conference held by the Committee for a Responsible Federal Budget, former Congressional Budget Office director Barry Anderson stated, “In the next six weeks, there really isn’t the time to technically draft that legislation, take it through the Congress, vote on it and have it signed.”

Different groups have started to work together to formulate budget plans, but what happens if August 2 arrives and the legislature cannot come to an agreement? No one knows for sure, but the thought is that the U.S. Government may have to delay payments to U.S. citizens and government contractors.

One of the biggest concerns is how all the indecision could be viewed by the international community, many of which are beginning to doubt the U.S. and their ability to manage their financial affairs. According to news reports, the worst thing that could happen is for confidence in the U.S. to plummet, causing a “cascade of negative events” which could be felt worldwide.

While the U.S. Government attempts to put the Federal “house” in order, many Americans are struggling to keep their own financial affairs afloat. Since 2008, Americans have seen their home values plummet, a high increase in joblessness, and a higher cost of living.

In the last few months, even with the Obama stimulus plan, we have not seen the employment rates increase or the economy rebound. Add the increasing gas and commodity prices and families are really feeling the pinch.

Hopefully, the U.S. Legislature can begin to make significant cuts and help the Federal Government become solvent. It will take guts and willingness to make hard decisions. Americans will have to be willing to sacrifice and lose their “entitlement” mentality, but it needs to be done before it’s too late.

Discharging debts with Bankruptcy

Unlike the Federal Government who simply prints more money to cover their debts, you do not have that option. So what can you do if you are facing a home foreclosure, bank account levies, property repossessions or wage garnishments? There may be several options to consider, including bankruptcy.

Bankruptcy may allow you to discharge most of your unsecured debts or repay your debts with a 3 to 5 year debt repayment plan. Filing Bankruptcy will also initiate an automatic stay to stop a home foreclosure and stop creditor harassment actions.

Are all debts discharged by filing for bankruptcy? Most unsecured debts can be discharged. Debts not discharged can vary but generally include: tax debts, spousal and child support debt payments, debts not listed on bankruptcy schedules, educational loan payments, fines for injuries to persons or property, DUI fines or penalties assessed for personal injury, debts owed to tax-advantaged retirement plans, and cooperative housing debts.

Hiring a Bankruptcy Lawyer

If you are considering filing for bankruptcy protection, contact a bankruptcy attorney. Bankruptcy lawyers work with thousands of clients and can make sure you find the best option to solve your financial crisis.

Bankruptcy laws are more complicated than in the past. Changes to bankruptcy laws have made it more difficult for some filers to file Chapter 7 Bankruptcy. If you are unsure what type of bankruptcy you can file, contact a bankruptcy lawyer

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Beth

Beth L. is a content writer for Better Bankruptcy. Good content and information is one of many methods we utilize to bring you the answers you need.