Being unable to afford your household bills can be overwhelming and stressful. You are probably constantly worrying about what will happen to your home and your family. Where will you live if you cannot continue to make the payments? Will your car be taken away? Your credit will be damaged and it could ruin your chances of purchasing a home or a vehicle in the future, even once you are back on your feet financially. Bankruptcy can be an option for those who are over their head in debt. Bankruptcy offers many benefits, with the biggest being that it allows the person to financially afford their debt better.
Bankruptcy can be an option for both personal and business finances. Many businesses may also find themselves under water and unable to pay their debt. They can close down the business once it is no longer profitable, but the leftover debt can severely affect their personal finances as well. This makes bankruptcy a great option for businesses as well. However, personal bankruptcies are much more common. 97% of bankruptcies in 2014 were personal and 3% were business. Additionally, according to the US bankruptcy court statistic, more than 1.5 million people file for bankruptcy in the average year. Legal representatives that are specialized in bankruptcy filings are necessary to ensure proper bankruptcy is filed.
A bankruptcy attorney can help in various ways. Firstly, there are different types of bankruptcy filings. The most appropriate filing will depend on the person?s individual financial needs and their specific debts. One of the bankruptcies will require that all of the debt still be paid back, just lowering the monthly debt payments. This type of a bankruptcy also rolls all of the debt into one monthly payment, making it impossible to lose the house or the car, as long as the payments are made each month. The other type of bankruptcy wipes all of the debt clear, allowing the person to start over. They may still be responsible for things like mortgage taxes and secondary loans. Some loans may not be included in this type of a bankruptcy as well. Bankruptcy lawyers are the best legal representative to understand all of this information.
The person filing for bankruptcy must also be prepared to pay a fee to file. This fee will vary, depending on the specific legal representative that is handling the bankruptcy case. Bankruptcy filers must pay a filing fee. For a Chapter 7 case, the fee is $335. For a Chapter 13 case, the fee is $130. This filing fee is often the same, regardless of where and with who the person files with. However, the legal representative charges will vary. It is also important that a person filing for bankruptcy file in their appropriate county and state. Bankruptcy lawyers in Arkansas, for example, will file for Arkansas residents. The different bankruptcy filing procedures may vary from state to state.
A bankruptcy claim is very popular because of the opportunity for improved credit later on. A person who struggles to get out of debt on their own is likely to struggle with poor credit for many years. A person who chooses to file for bankruptcy can either wipe their credit clean or lower their debt monthly payments. After a specific amount of years, depending on the specific type of bankruptcy claim filed, the claims will be removed from the credit report. The person has the ability to start over. This is another reason why it is so important to hire an experienced and professional bankruptcy attorney. It is necessary to ensure that the bankruptcy is filed correctly the first time, to ensure that the report is improved after the specific amount of years.
It can be very overwhelming and stressful when you have so much debt that you are unable to pay it. This is often what leads to bankruptcy claims. Bankruptcy allows the person to reduce their monthly debt payments or to wipe all of their debt clean. A bankruptcy attorney can help with the filings and can ensure that the appropriate bankruptcy claim is filed.