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The Euro Bankruptcy VS US Bankruptcy- Which Helps YOU Recover?

By writer

The Euro just celebrated its 10th birthday this January 2009. A shock for some, who didn?t think the unit of currency would last very long. The Euro saw its share of resistance from financially struggling countries?Denmark has long been a detractor.

In the face of the ongoing recession, the Euro faces unprecedented challenge and a Danish level of disapproval. The official money unit for 16 of 27 states in the European Union, each state is expected to reach a certain productivity level, as the Euro cannot be devalued. Recently, the ?underachievers??Portugal, Italy, Ireland, Greece and Spain (affectionately called PIIGS) are all struggling to keep up with high performing countries like Germany and England, with the recession widening the gap.

Successful countries like Germany can?t be Europe?s Uncle Moneybags forever–Italy is likely to descend even further, with unemployment reaching 11% by 2012. So, what would happen if a flood of Italians filed for bankruptcy (there called insolvency)? Italy and Spain have the harshest insolvency system in Europe, which don?t seek to rehabilitate companies and individuals or offer them significant protection against predatory creditors?the most protection offered is to have a few months of transactions exempt if made after declaring insolvency.

The bankruptcy insolvency program for most of Europe is very similar to the U.S.?s Chapter 11 Bankruptcy repayment model, but only promising to restructure 60% of the debt. It?s worth noting that there is nothing in insolvency law that gives anywhere near the amount of protection to individuals that a Chapter 7 bankruptcy provides. U.S. bankruptcy is infinitely more forgiving, and can provide people with a much needed fresh start.

In America, we have second, third, and fourth chances to file for personal bankruptcy?just look at Donald Trump, who has seen investments file for bankruptcy several times and come out on top. We also don?t have nearly as much of a social stigma attached to filing a bankruptcy.

If you?re in debt over your head, it may be time to speak with an attorney who focuses in bankruptcy issues every day. Get a free legal evaluation right now.

Full post as published by Consumer Bankruptcy Blog from Legal Helpers on July 28, 2009 (boomark / email).