Financial difficulty is common for a large number of people, and even more surprising is that the bankruptcy rate in the country is one out of every seven households. Shocking? Not to residents of one state, where Chapter 7 accounted for 84% of the state’s filing for an entire year. With those numbers, bankruptcy attorneys have their hands full.
The notion that only those who are less educated are prone to bankruptcy is largely untrue based on the fact that more than 27% of those who file for bankruptcy hold a bachelor’s degree. Before making any decisions about filing for bankruptcy, be sure to consult a bankruptcy attorney to see if it is the solution for your financial difficulties. It might not be the right way for you to go.
So why file bankruptcy at all? Many people consider it a “fresh start” but what they don’t realize is that it does not necessarily wipe out your existing debt. You also want to consider the type of bankruptcy that you need before doing so. Chapter 13 bankruptcy is a possibility for debtors with credit card debts of about 1 million dollars or secured debts like car loans or real estate of less than $360,475.
Whatever your financial situation may be, be sure to bombard your attorney with as many questions as possible. Some definite questions to ask are:
How do I file for bankruptcy?
How does Chapter 7 bankruptcy work?
How does Chapter 13 bankruptcy work?
Does it cost anything to file bankruptcy?
What happens when you file bankruptcy?
How do I know when to file for bankruptcy?
Make sure you are fully informed about the decisions you and your family make. Bankruptcy attorneys can give you much of the information you need.