Filing For Bankruptcy Making The Best Of It

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Nobody can see into the future; but if you could make a choice, you probably wouldn’t include filing for bankruptcy in your future. Nobody wants to file for bankruptcy, but it does happen. In fact, filing for personal bankruptcy is a deeply misunderstood process. You may not file for bankruptcy because you’re completely out of money, and it might not be the end for your ventures. Many people do “bounce back” from filing for bankruptcy. But in order to do so, they need to make the right financial decisions about filing for bankruptcy. After all, there are many different types of bankruptcies for which you an file, for want of a better term. What you need is someone to advise you on how to file bankruptcy and when, as well as which type of filing would be right for you. In this case, we’re talking about a bankruptcy lawyer. A bankruptcy lawyer can help make a difficult process easier on you, and for that matter, they can advise you on where to turn next. There are many reasons why people file for bankruptcy; there’s a good chance that many of the reasons why you’re filing for bankruptcy are not entirely your fault. Don’t blame yourself — look into the future, and how filing for bankruptcy could actually help you in the long term.

Filing For Bankruptcy Today

Many of us hear about famous people filing for bankruptcy and think that it couldn’t possibly happen to us. But people file for bankruptcy every day, and they aren’t all socialites spending beyond their means. Recent American statistics have indicated that 1.5 million people file for bankruptcy each year. Many of these people aren’t living ridiculous lifestyles. In fact, they often file for bankruptcy for business reasons. In 2014 alone, 97% of bankruptcy filings were for business purposes, with only 3% of them being personal. A variety of different people file for bankruptcy in many different societies, with the top five states in bankruptcy filings being California, Florida, Illinois, Georgia, and Ohio in that order. On a very basic level, we know why people file for bankruptcy. They need capital, and this makes particular sense when we look at people filing for bankruptcy for business reasons. However, a lot of the time people file for bankruptcies due to events largely out of their control.

Why People Are Filing For Bankruptcy

So, why is that people are running out of funds? Unfortunately, many people want to start businesses but began at a disadvantage due to debt they’re already dealing with. Very often, this debt is due to student loans. Recent studies have suggested that student loans are the reasons behind about 1% of all bankruptcy filings in the U.S. This equals about 15,000 bankruptcy filings each year. Now, the issue is that student loans put people at a disadvantage when they try to do anything else. If a business doesn’t take off like a person expects, they now have the financial burden of both the business and student loans. Another issue people confront is the unexpected. Say you’re in an accident — this could equal thousands of dollars in medical expenses. When it comes to personal bankruptcies, about 62% are due to medical expenses. But what happens after you’ve decided to file for bankruptcy? Why do you need a lawyer?

Filing For Bankruptcy With A Lawyer

Many of the bankruptcies people file for are Chapter 7 bankruptcies. Chapter 7 bankruptcies, like many other bankruptcies, need to be filed for with the help of an attorney. Why? An attorney equals success, and you’ll need your claim to be successful in order to recover from your financial hardship. Should an attorney be at work, the success rate for Chapter 7 bankruptcy filings is 95%. But be prepared — on average, a Chapter 7 case costs $1,500 to $3,000. They also come with filing fees. For Chapter 7 cases, the fee is $335 and for a Chapter 13 case it’s $310.

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