Epiq Systems, a legal technology provider, has estimated that around 1.25 million Americans will file for bankruptcy this year. You may be surprised to find that this number has decrease from the previous year, with 1.38 million filing. Unfortunately, so many people are finding themselves in times of financial hardship. The best thing you can do during these times is to understand personal bankruptcy rules.
In Indiana alone, 9,131 people filed for bankruptcy in the third quarter of 2012. Unless you are a business or corporation, you will not be needing to file for Chapter 11 bankruptcy. You should begin researching Chapter 7 and Chapter 13 bankruptcy.
If you are thinking you need the financial relief of bankruptcy, you should look into hiring bankruptcy law attorneys. These specialists will help you determine what chapter of bankruptcy best meets your needs, and if you qualify. If you have very few assets, and are looking to liquidate all assets and debt, your Indian bankruptcy lawyer will guide you toward Chapter 7.
Chapter 7 personal bankruptcy rules will require you to give up all major assets to be sold and put toward existing debt. You will be able to discharge all of your unsecured debt, but be aware that secure debt, like student loans will still be in effect. You will also need to file large amounts of paperwork, including a means test. If you fail the means test, you will not be allowed to file for Chapter 7 bankruptcy, but may still qualify for Chapter 13 bankruptcy.
If this does not sound like the right financial choice for you, your lawyer can give you a better Chapter 7 and Chapter 13 comparison. If you are able to pay your monthly bills without too much trouble, but are having trouble paying previous debtors, Chapter 13 may be a better option. Instead of liquidating your assets as in Chapter 7, Chapter 13 allows you to repay debt under a 3-5 year repayment plan. Your debt will be handed by a government trustee, and you will pay them one monthly fee until your debt is resolved.
With all of the different type of bankruptcy and personal bankruptcy rules, you would be crazy not to hire a lawyer for bankruptcy tips and advice. What you are going through is not uncommon and you should not be ashamed to ask for help. According to Sports Illustrated, over 75% of professional athletes are either bankrupt or facing serious financial difficulties just two years after leaving their careers. If you are struggling with managing your debt, seek out a bankruptcy attorney referral as soon as possible. See this link for more references.