Four Facts about Bankruptcy in the United States

If your financial situation has become overwhelming, you may wonder if you qualify to file for bankruptcy. To find out bankruptcy guidelines, you can talk to a Chapter 7 bankruptcy attorney. According to Experian, your average income over the previous six months must be lower than the median income of a same-sized household group in your state to qualify. If you don’t meet those criteria, you must pass a “means test.”

If you are being pressed for repayment by your creditors or have unsettled debts, you will want to find a solution. Some people in these situations may find support and solutions by talking to a debt specialist. These professionals can help those who are bankrupt to recover their financial situation and recover solvency.

The prospect of bankruptcy can affect businesses, too. Firms in that situation can often find answers at a debt consulting group. These groups will help you find creditor solutions that may apply to your situation, such as refinancing, sale of non-core assets, or restructuring of existing liabilities. There are many solutions a qualified debt consulting group can offer. These groups will work with businesses to maximize their cash flow and to prevent them from getting to the point of bankruptcy.

Filing for bankruptcy is a big step, and it can be scary. Although it might feel like a failure or a punishment, especially for self-employed bankruptcy, in reality, bankruptcy can be the first solid step toward financial security and freedom.

A bankruptcy lawyer can help you navigate the intricate legal frameworks of Chapter 7 and Chapter 13. Some of your questions will be pretty specific, like, “Can you move out of state while in Chapter 7 bankruptcy?” A bankruptcy lawyer can give you solid and reliable answers. (Yes, you can move out of state! Many people move after bankruptcy to seek new employment and start over.)

Other questions, like “Will bankruptcy ruin my life?” are harder to answer. While your life is your own and everyone is different, it’s important to understand that millions of people have been through this struggle, and the vast majority have come out the other side and rebuilt their credit and financial lives.

Will filing bankruptcy ruin my life? It doesn’t have to. A bankruptcy lawyer can help you use the law to resolve your debts and get the new start that you deserve. Bankruptcy is not just an ending; it can be a new beginning.


How to file for bankruptcy

For people unfamiliar with financial laws, knowing when to file bankruptcy, or if you are qualified to do so, can be confusing. However, filing for bankruptcy can be a way for you to have a fresh financial start if you feel overwhelmed with debt.

Here are the four facts you need to know about bankruptcy law in the United States:

1. Chapter 7 bankruptcy: Chapter 7 bankruptcy is for individuals who are unable to pay their existing debts. A Chapter 7 bankruptcy attorney can work with individuals who are seeking forgiveness of their debt. However, Chapter 7 bankruptcy also requires an individual’s assets to be liquidated and sold. Certain exemptions can be made in the liquidation, such as one’s house or personal items.

2. Chapter 13 bankruptcy: A Chapter 13 bankruptcy attorney is qualified to represent individuals with regular incomes who seek a reorganization or their debts and a reconfiguring of their debt repayment plans. An attorney can provide you with more Chapter 13 bankruptcy information and let you know how to file for bankruptcy.

3. Chapter 7 bankruptcy and Chapter 13 bankruptcy are the most common types of bankruptcy in the United States.

4. Filing for Chapter 13 or Chapter 7 bankruptcy will reflect negatively upon your credit score, and while they can stay on your credit report for a long time, regularly paying your bills and loan payments can help you re-establish a good credit score. Great references here: