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One clear problem facing America today is the battered economy and lack of jobs. As a result of the damage done to the economy in 2008 and beyond, personal bankruptcy in the United States has reached an all-time high. Much of the increase in personal bankruptcy petitions has been a direct result of job losses in the business and financial sectors. Exacerbating this is the fact that many young families dependent on the income that has been ravaged by the recession and older Americans facing a medical crisis or living in nursing homes may not have the personal resources or income available to weather this. Not there. As a result, more Americans than usual, including older Americans and retirees, are turning to the courts and a bankruptcy attorney for guidance and help navigating the crisis.
But what is bankruptcy? As the Supreme Court stated in a case in 1991, the purpose of the Bankruptcy Code is to give families and individuals in the United States a fresh financial start. Another way of looking at it is that bankruptcy allows you to make a fresh start without any debt burdens affecting your life. How do you see if you are worthy of this fresh start? The best approach is to make an appointment with a qualified licensed bankruptcy attorney in the state where you live. Bankruptcy is a specialty in law and no one knows about bankruptcy better than a qualified bankruptcy attorney.
The first thing your solicitor will need to complete when you meet is a worksheet that lists your assets and your debts as well as a list of creditors and your payments along with the amount of money each is owed. . This is all to give you a snapshot of your current financial situation. This snapshot is necessary to see what type of bankruptcy protection you are eligible for and how best to proceed. The two basic forms of bankruptcy protection are Chapter 13 reorganization and Chapter 7 liquidation. The basic difference is that under Chapter 13 you agree with the court and your creditors to re-pay, in most cases at a significantly reduced rate, all of your outstanding secured and other debts over a specified time period, usually five years. Year. A Chapter 7 liquidation, on the other hand, is a complete sale of all your non-essential assets and a complete discharge of all outstanding debts. With a Chapter 7 you are allowed to keep certain assets that are essential such as work equipment or tools, automobiles and other transportation, IRAs and savings and your primary home. You are not allowed to have or wear anything that is superfluous. When you have decided that you need to go through with your bankruptcy in order to give yourself a fresh start, your bankruptcy attorney will guide you through the maze of filing petitions and court proceedings to complete your start over. will help to do.
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