No one wants to file for bankruptcy. For many, it feels like an admission of failure. The number of people filing for bankruptcy has skyrocketed in recent years and now there are more than one million filings each year in the United States. Many of these are caused by unforeseen medical issues and problems.
Things to Consider when Thinking About Filing for Bankruptcy
When your finances, either personal or for your business, have reached a point where you are thinking about filing for bankruptcy, you should consult a bankruptcy attorney. The main reason is they may know of options you have available to you that would preclude you from filing for bankruptcy. They are experts in this field and may have information that you do not have.
The second step is to take a real, hard look at your finances. Get a credit report for yourself. This will let you know where you stand and what creditors see when they pull that same report. You will do yourself a lot of good if you start with credit counseling even before you file for bankruptcy. You will be required to do this later but you help yourself in the eyes of the court if you are proactive.
Decide what kind of bankruptcy filing is the best for you. This is another reason to have a bankruptcy lawyer. They can explain the different types of bankruptcies. The Chapter 7 bankruptcy is very different from the Chapter 13 Bankruptcy.
Most bankruptcy filings are Chapter 7. This is often called a liquidation bankruptcy. In this kind of bankruptcy filing, all of the assets owned by the business or individual are sold to pay creditors. At the end of the process, the person or business no longer owes any remaining balances on the debts (what debts are left after the assets have been sold). Nearly 95% of all Chapter 7 bankruptcy filings in which a lawyer is used are successful.
Chapter 13 bankruptcies are different. They are often referred to as reorganization bankruptcies. The business or individual filing for bankruptcy retains ownership of their assets and a structured plan is worked out so that they are give more time to pay their debts. This is great for businesses who have hit a hard patch but can get back on their feet if given some more time.
The requirements for the different kinds of bankruptcy filings are very different. They both entail different sets of circumstances. If you are considering filing for bankruptcy, seeking out a good lawyer is really key to getting an outcome you can live with. One good thing about all of the forms of bankruptcy is that the minute you file for bankruptcy, your creditors are informed and any unwanted phone calls or visits must stop immediately. This should take a weight off of anyone?s minds who has had to deal with that.
Most people think they can go their entire lives without needing to consult an attorney. Whether you are thinking about filing for bankruptcy or not, the odds are you will need legal advice sometime in your life.
Like bankruptcy filings, no one ever wants to need disability benefits but the average age of a worker receiving them is just under 54. in 2014, most people (86%) receiving Supplemental Security Income (SSI) benefits were blinded or suffered another kind of injury that resulted in them becoming disabled. Nearly as many people (85%) were injured because they slipped and fell at work. None of these people asked to become disabled. Like bankruptcy filings, the process for receiving disability benefits is long and complicated. People need to have a lawyer who has been working with this system to prevail. There is a formula many offices use when determining SSI benefits but when the rules are applied jn an arbitrary manner that often defies logic.
For both bankruptcy filings and disability claims, having an experienced professional guide you through the process can make all the difference. The rules and regulations governing both scenarios change all of the time and it takes someone who deals with them day in and day out to win the day.