Who are The Winners in Bankruptcy?

The truth of the matter is really quite bizarre and can demonstrate that it is just an excuse to give food (money) to a lot of bottom feeders and create a whole industry in the process!

Over the years may have been led to believe that the idea of bankruptcy is to protect both debtors (those who because of money) and creditors (money owed), when this happens. The basic idea of this is not to allow the debtor to run up any debt and become worse off, while protecting the creditors are no longer allowed to give the greatest potential for failed credit. Beyond that the debtor’s assets are seized, liquidated and converted into cash to pay creditors.

A very noble plan – that rarely really works that way. In fact, in most cases considered in obtaining material for this article, none of that happened.

In fact most people went bankrupt or were forced to do so, he suffered several years of embarrassment, loss of confidence, lack of credit and in most cases does not believe the bankruptcy helped them in any way at all.

You may feel it is a very skewed view of the person whose fault it is usually when one gets into this situation, ie the debtor. However, you will find that most of the creditors involved in these types of cases present with the feeling that they have been deceived too, and very few are satisfied with the results.

So it really would benefit from a bankruptcy? Possible three different areas of people who actually constitute a very large group and the elite do not want this type of legislation changed at all. They are basically the government in the form of tax collection in the sector (tax man), a group of lawyers and a group of administrators in trust companies (commonly known as the Trustees) that following the bankruptcy of farms, re-distribute their property and report back to the courts in most countries.

In almost all cases examined, the last to benefit from a bankruptcy would be the two most seriously out and parties formed by the debtor and the creditors involved. To understand this more clearly than you must understand that there is a group of people forming an entire economic sector of the community who do not see debt as more than “something” or commodity transfer or trade in

Much of the legal sector and debt managers in this group. People involved in claiming “to help” others get with the debt and bankruptcy. In fact, these same people may even advise a creditor to “sell its debt,” or write off in order to avoid a financial loss not All money obtained through a debtor in bankruptcy.

Then try to recover the debt even though one of its subsidiaries, and in the process, increase the size of the debt with the extra costs that add to the debt for his work. In the end, can then “sell” the debt over the same exact price you paid for it (percentage wise) to a debt collection business, but because the debt has doubled in size to make a return of 100% of its money!

While legal persons involved in the bankruptcy have their rights guaranteed, along with the tax man (through the debtor’s assets) and then managers have a fixed percentage of assets recovered this process will continue promoting the “feeders real substance and not the victims of bankruptcy.

But is there a better answer?