Even though the moral fabric of the US is quickly declining, many Americans fight the dilemma of doing the right thing even at their own expense. That’s why many people ask the question, “What does the Bible say about filing bankruptcy?” The Bible has a lot to say a about bankruptcy filing and it even shows an old expressions that many people use like “robbing Peter to pay Paul.”In Deuteronomy 15:1-2 it says:

At the end of every seven years you shall grant a release. And this is the manner of the release: every creditor shall release what he has lent to his neighbor, his brother, because the Lords release has been proclaimed.

When Congress wrote the bankruptcy laws, this was one of the verses they used to put into law as a way to allow businesses and citizens alike to have a second chance being released from their debts. It’s interesting that until the bankruptcy code changes in 2005, one was able to file for bankruptcy every seven years under Chapter 7. Now, after the changes a person can file Chapter 7 bankruptcy every eight years. Also in the Bible it speaks of rulers charging exorbitant amounts of interest when loaning money. Many people became in bondage to these wicked rulers because of this. It sounds almost like déjà vu to what is happening in America today. Many Americans are saddled to unsustainable debt and are persuaded by guilt to not file bankruptcy. Many good hard working people destroy their lives while trying to do the right thing. When times get tough, they should consult a bankruptcy attorney to discuss their options. GOD doesn’t want individuals to be in bondage to anyone or anything, including debt. People need to learn how to become debt-free and break the bondage.

In the bankruptcy filing, LightSquared listed assets of $4.48 billion and $2.29 billion in debts. The bankruptcy was filed in the U.S. Bankruptcy Court in Manhattan under Chapter 11 today. Recently, the company has been negotiating with creditors, who were requesting Philip Falcone to step aside. Under current terms, Mr. Falcone will remain with the company as well as the same management team.

CFO Mark Montagner said in a statement, “Bankruptcy is intended to give LightSquared sufficient breathing room to continue working through the regulatory process that will allow us to build our 4G wireless network.”

On April 30, 2012, creditors asked for Falcone’s removal when they gave the company an extension to renegotiate its debt, with the intent of stopping a default. Philip Falcone runs Harbinger Capital Partners, which is the New York based hedge fund. The hedge fund has invested approximately $3 billion in LightSquared and at the time of filing bankruptcy it was reported they owned as much as 74% of the company.

LightSquared made front-page news back in February when the FCC withdrew its approval for the network after the military stated it could possibly interfere with government GPS. The original plan for the networking company was to convert satellite service airwaves into a different spectrum for land-based radio towers.

It will be interesting to see if they will get approval for the network and be able to come out of Chapter 11 bankruptcy stronger. It seems that this bankruptcy will become politicized as the company needs the FCC to approve this network to be successful after filing bankruptcy.

Many people realize that filing bankruptcy is in their future, but don’t want to spend the money. They continue to make minimum payments to their creditors spinning their wheels like they’re stuck in the mud. It takes a while before the light clicks on and they realize that all this money they’ve been spending could have been put towards hiring a bankruptcy attorney to file. When financial trouble arises, people should not bury their head in the sand, they should consult a bankruptcy attorney to find out if filing bankruptcy is even an option for them. In some cases, the attorney might feel that debt consolidation is a better option or budgeting might get them out of trouble depending on how bad the situation is. Not knowing for sure and plowing forward will just be throwing money away.

It is true that Americans can’t be fully to blame for their lack of knowledge about bankruptcy. The credit industry has done diligence putting a terrible stigma ending with a big scarlet B. on all those that file for bankruptcy.  Even though most of this is a lie, if they can keep Americans in the dark about bankruptcy, they can keep them in bondage to debt.

The bottom line is, filing bankruptcy is really not that expensive when considering how the benefits outweigh the negatives. The number one benefit other than the automatic stay, is the bankruptcy discharge. When filing Chapter 7 bankruptcy, the bankruptcy discharge will wipe out all unsecured debt including credit cards, medical bills, personal loans and payday loans. This covers where most Americans get themselves into trouble.

Many people ask the question, Are there any hidden costs when filing bankruptcy? The answer is no. Everything will be disclosed by the bankruptcy attorney when filing bankruptcy. The cost to file Chapter 7 bankruptcy is about $300 in filing fees, between $25-$50 apiece for required credit counseling and financial management courses, and then there is the fee of the bankruptcy attorney which could be subjective to the area in which the individual lives. The total cost for filing Chapter 7 will typically run around $2000. When considering the amount of debt that the average person includes in their bankruptcy discharge, the cost of bankruptcy is really quite minimal.

After doing some research, I came to the conclusion that the reason foreclosure rates are down is because many banks are holding off on foreclosure. Initially, back in 2008 when everything fell apart, banks were foreclosing on properties is fast as they could process them. What happened was, many of the banks were Robo Signing all their forms and not doing diligence to even see who actually owned the property. Prior to 2008, real estate paper was being bundled up and sold to hedge funds all over the world. Many of them broke up their bundles and sold them to different investors. With the notes being transferred numerous times, it was pretty hard to find out who was actually the lien holder on the property. In 2010, after being sued by a new group of attorneys that figured this out, banks decided to take a step back and make sure their i’s were dotted and the t’s were crossed. This gave many Americans some breathing room to stop foreclosure on their property they were behind on. So in reality, the foreclosure and bankruptcy filing problem still exists but it is just not rearing its ugly head yet.

People in financial trouble need to use this time to heed to the warnings of what’s to come. Just because the banks are waiting now, doesn’t mean it won’t be coming soon. There are many stories how people have lived in their home for up to three years without making a payment and have not gotten a foreclosure notice. It’s pretty obvious, the writing is on the walls and these people should be speaking with a bankruptcy attorney to make plans for what is to come.

Over the years, the credit industry has done a good job giving bankruptcy an ugly stigma. It’s initially seen firsthand with debt collectors and how they speak to consumers. Initially, they will act understanding to one’s situation and try and be friend the debtor. When casual conversation turns towards bankruptcy, the debtor will be told that they will never be able to have credit again if they file for bankruptcy. Some of the creditors become much more aggressive telling the debtors that they can be imprisoned for not paying their bills. All of these lies have been told for so many years, many people believe them. They really should fall in the myths and legends category and be forgotten. If creditors can make an individual feel like a loser, they will be able to get them to continue sending payments until there’s no money left. After speaking with a bankruptcy attorney and filing bankruptcy, most individuals feel ripped off and deceived by their creditors.

Filing bankruptcy should not be considered a mark of shame. Congress created bankruptcy to help good hard-working Americans have a way out of uncontrollable debt. Most people who file for bankruptcy couldn’t foresee what was coming when the financial crisis hit. Some are hit with natural disasters, divorce, unemployment or a medical illness. Having the ability to eliminate debt is the only saving grace that keeps our great country moving. Capitalism would not survive without the ability to file for bankruptcy. There would be no entrepreneurs as no one would be willing to take the risk on a dream if they didn’t have a way out. Just ask a bankruptcy attorney and they will tell you the only thing post-bankruptcy filers wish they could change was that they should have filed sooner.

Hawker Beechcraft CEO Robert Miller said in a statement, “We are pleased to have reached an agreement with our largest lenders and bondholders on a solution to stabilize through our capital structure.”

With Hawker Beechcraft filing bankruptcy, this is another hit to the aerospace industry in Wichita, Kansas. In January 2012, Boeing announced it would be shifting its plan there.

Hawker Beechcraft makes commercial planes and also is a military contractor. Recently, the aircraft company has been fighting for a light air support Air Force contract in the amount of $355 million with Sierra Nevada Corporation and Embraer, a Brazilian aerospace firm. Last year, the contract was awarded to the other two firms prior to the Air Force canceling the contract and restarting the competition.

With the US economy sliding down that slippery slope, many corporations will be looking for the relief of a bankruptcy filing. Hopefully, Hawker Beechcraft comes out on top as the Wichita area can’t handle another loss of employment to the aerospace industry.

It is true, that filing bankruptcy will put a big scarlet B on your credit report, but it doesn’t mean you will never have credit available to you ever again. For an individual that files Chapter 7 bankruptcy, it can stay on their credit report for up to 10 years and for the person filing Chapter 13 bankruptcy, up to seven years. What most people don’t consider is at the time of filing bankruptcy their credit was probably already in the tank. One of the biggest factors in a credit score is the person’s debt ratios. When a person comes the time in their life when it’s necessary to file for bankruptcy, usually their credit cards are tapped out and no new credit is available to them. At this time, they probably have a pile of late pays and some unpaid bills and this will put the final nail in their credit coffin. So when someone says that filing bankruptcy will destroy your credit, talking you destroy something that is already ruined.

So this brings the question, can my credit survive filing bankruptcy and foreclosure? The answer to that is, yes. It might not be the week after the bankruptcy discharge, but within a short amount of time credit will be offered to many post bankruptcy. Creditors are opportunists and know that many individuals after filing chapter 7 bankruptcy will exit being virtually debt-free. They also know that the same group cannot file bankruptcy again for eight years. As long as the person can stay employed and has a steady income, many creditors look at this as an opportunity to make some money. There are many vultures out there after bankruptcy also and a person that just got themselves out of debt be very careful. Some of these predators prey upon individuals immediately after filing bankruptcy offering them credit at a much higher interest rate and fees. Some people will jump at the chance to get another credit card and put themselves in bondage to this predatory lender. A bankruptcy attorney will usually tell their clients to enjoy the freedom living on what they make and rebuild their credit rating slowly. Before making any rash decisions, a person should consult their bankruptcy attorney to see what they think about the offer. After going through all the stress of being in debt and filing bankruptcy, why would someone want to put themselves back in that same situation?

It is known for distributing fresh fruits and vegetables to restaurants, schools and stores all over the southeast. According to bankruptcy filing documents in the U.S. Bankruptcy Court in Birmingham Alabama, the company currently employs 400 and has distribution centers in Alabama, Arkansas, Florida, Georgia, Mississippi and Tennessee.

The bankruptcy attorney representing Adams produce has not made any comments regarding the pending bankruptcy. On Friday, US bankruptcy judge Tamara Mitchell ruled, allowing the company to sell $649,000 in produce held in company inventory. The judge also heard a number of motions regarding the bankruptcy petition, including ones asking for authorization to continue paying employees wages. This motion and others were continued on until April 30.

It’s becoming common to see old household names filing bankruptcy. Adams Produce was founded in 1903 by Edwin Calvin Adams. Back in 2010, the Adams family sold the company to a private equity firm and current executives.

The company’s loans are now secured by company assets. Currently, the company has a real estate loan to the tune of $1.3 million and a revolving credit loan in the amount of $3.4 million. The company also owns $4.4 million on Accounts Payable from other creditors and $10.2 million to agricultural suppliers.

Only time will tell if this hundred-year-old icon will exit the bankruptcy filing in better shape.

In the past, the government regulated routes and fares and pay was set by the industry. So airlines went ahead and signed up with unions for above market wages, unbelievable pensions and work rules that benefited the employee. After the air travel industry was deregulated, the large airlines faced huge competition from nonunion smaller airlines making it hard for them to show a profit. Unions are now strong-arming the airline industry by threatening a crippling strike giving them the upper hand in all contract negotiations.

Now airlines are allowed to file for bankruptcy and all of this has changed. The airline industry has found a way to toss out these union agreements and cut wages by filing bankruptcy. Since they aren’t making any money, it’s still cheaper to hire a bankruptcy attorney and go through the Chapter 11 bankruptcy process than to pay extortion money to unions. With a few airlines using this strategy, the threat of union strikes has been neutered.

Recently, American Airlines who is currently embroiled in a bankruptcy filing, asked a bankruptcy judge to approve a Chapter 11 plan that would eliminate 13,000 employee positions, reduce all benefits to current employees and retirees and change work rules for employees. The employee unions had another idea of getting US Airways to buy out American out of bankruptcy. They went as far as striking new labor agreements with US Airways to strong arm American out of business. It seems they have now taken on a vendetta to toss out American Airlines executives on the street.

It’s sad to see employee unions forcing businesses into filing bankruptcy because of their unsustainable wages and pensions. It’s happening throughout the entire American fabric and municipalities and government jobs also.

Most people don’t realize it, but becoming debt-free is totally within reach. The fastest way for someone to become debt-free is filing bankruptcy. When someone gets the point of juggling their bills, they are probably ready to speak with a bankruptcy attorney and consider filing bankruptcy. For people that have large amounts of unsecured debt, filing Chapter 7 bankruptcy is king. The people that are struggling being buried under a mountain of credit card bills can be put at ease by filing Chapter 7 bankruptcy. A Chapter 7 will wipe out all unsecured debts including, credit cards, medical bills, personal loans and payday loans. This just about covers the entire gamut for the average person. The whole process takes about 4 to 6 months to get a bankruptcy discharge. The person filing will no longer need to worry about the creditor calls as the automatic stay will stop that immediately. The automatic stay will also stop foreclosure, lawsuits, judgments and wage garnishments. Personal Bankruptcy was created to help good hard working people get a second chance with a new financial future. Most people have forgotten that, life is good when you are debt-free. With constant changes to the bankruptcy code, it’s best to use the expertise of a bankruptcy attorney to make sure one get’s the maximum benefit. Every month a person pays bills that they know they can never payoff is one more month that they’re throwing that money away.