With the looming economy, the word bankruptcy seems to be popping up every now and then.
You must have surely heard it at one point or another recently, when someone is discussing things like how to save money or maybe be prepared for a financial downfall.
However, it is not really that simple to go into bankruptcy. If you probably understand the top reasons that people go bankrupt, you too can avoid doing them and probably learn to do the right things in life.
Poor Health Can Be A Major Cause Of Bankruptcy
The top reason that people go bankrupt in the United States is because of poor health or falling ill unexpectedly.
When you are in the helm of your career busy amassing fortunes, you would probably be better off if you can take care of yourself.
On the contrary, if you end up falling ill, then you might lose out on a lot of money due to the sickness.
This is probably when it is wise to have backup plans to ensure that your money works for you, and not against you in this situation.
As long as you have control over the situation, then you have nothing to worry about.
But, it is unfortunate that over half of the people in America fall prey to unexpected calamities and disasters, which usually come in more than once consecutively. Don’t let your fortune have single point of support, and instead try to build it with multiple support sources. Continue reading
The bankruptcy laws before 1986 were designed for either wage earners or big businesses.
Before 1986 there were not many options for families, i.e., farmers or fishers.
Chapter 12 bankruptcy was created with these types of families in mind and is more of a mix between chapter 13 for wage earners and chapter 11 for business.
Chapter 11 bankruptcy that was created for businesses is very complicated. The forms and filings that must occur need to be done by a lawyer. The fees for filing this type of bankruptcy are very expensive and most families are not able to come up with these funds. Continue reading
When you have tried everything out and are still not able to resolve your debt and do not have a positive cash inflow, then it may be the right time for you to declare bankruptcy.
There are however certain conditions that you need to consider before you can go “Gung Ho” and declare bankruptcy. Once you have considered everything, only then you are eligible for declaring bankruptcy.
Declaring Bankruptcy Will Not Eliminate All Debts
Firstly, bankruptcy is not about telling that you have no money to pay for your bills and the government will take care of you. It is much more than that. You need to understand that there are certain bills that you are required to pay and the government will not handle all of them.
These include your children’s care and other loans like student loans etc. Continue reading
If you are in dire financial straits then it is important not to panic.
Take stock of your situation and then you might want to think about sitting down and discussing what is happening with a qualified credit counselor.
A credit counselor is an individual who is able to help people in terms of creating a budget and learning how to follow it.
Credit counselors can also advise you on how to properly use credit.
They can also help you come up with a solution that is right for you if you have a lot of debts and do not know how to pay them.
There are some credit counseling agencies that are non-profit and will provide counseling for free whereas others will charge you a fee for their services. Take the time to research your options over the Internet before you decide which agency to turn to for help. Continue reading
When you file for bankruptcy there are a lot of intricate laws and codes that you must pay attention to.
It is always better to obtain advice from a lawyer to help you wade through all the complications.
However, when you file for bankruptcy and depending on what type is filed, there are some exemptions as to what you must liquidate under the law.
Bankruptcy Exemptions Can Change By State And Country
These exemptions change from state to state so it is important that you find the exemption codes for your state. There are a few guidelines that most states follow and the exact details of the amounts of the equity that you are allowed to have in these assets is the variable between states. Continue reading
Declaring bankruptcy will not be a simple process. In fact, it is very complex and there are different types of bankruptcy.
This article gives a quick summary of what bankruptcy is, it’s purpose and the different types of bankruptcy.
The general concept of bankruptcy is simple. It is a process that was created for those with too much debt.
Bankruptcy exists to help those with overwhelming debt start over. Bankruptcy cancels the debt and/or allows the debtor to pay the amount that they can to a creditor.
When filing for bankruptcy, all pursuits from creditors must stop by order of the court.
A creditor can no longer take any action against the person that files for bankruptcy. This includes not only phone calls and letters but also includes the lack of ability to take any further legal action against the debtor. Continue reading