Filing For Bankruptcy – A Recent Update
Declaring bankruptcy is not a situation everyone wants to face in their life time but when ones life can change is beyond ones control and reason. When an individual realizes that he has no other option of paying back the debts without resorting to filing bankruptcy he should make an effort to understand how to file for bankruptcy before going ahead with the plan. The bankruptcy process is very complex and without knowing how to file for bankruptcy and whom to approach it is difficult to reap the benefits of free bankruptcy services.
By free bankruptcy services one means that before filing bankruptcy petition it is compulsory for an individual to undergo a bankruptcy counseling session wherein everything starting from ones financial status to how one can pay off the debts is discussed and income and expenditure on a monthly basis is analyzed to determine whether the individual should file bankruptcy under chapter 13 or 7. Bankruptcy can not only be filed by an individual debtor but it can also be availed by small business houses who are under debt and have to get rid of it as soon as possible. Whatever be the decision of the debtor one should take initiative to study and research business bankruptcy information or personal bankruptcy information before taking the help of free bankruptcy services as being aware about certain aspects of bankruptcy will help the individual present his case more clearly in front of the bankruptcy counseling experts and all of them together can come to the right decision.
Recent statistics state that the number of people filing bankruptcy is increasing day by day due to sudden job loss and other financial crisis that is a direct result of the economic downturn. In the current economic crisis more and more people are falling prey to debts as they are not able to save enough to pay back the debts or due to external circumstances one ends up losing ones job or spending a lot on some medical crisis thus leading to increasing debt. With a large percentage of people under debt it is becoming difficult for them to avail loans or even refinance their current loans. As per the research of the National Bankruptcy Research Center the cases of filing bankruptcy increased to 36.5% in the initial six months of July 2008 which is supposed to increase in the coming years due to even more job losses , smaller pay checks, reduced credit limit, decreasing 401 (k) accounts and lesser savings.
Filing bankruptcy is not only restricted to the average man as many celebrities and richer section of the society also file chapter 11, chapter 7 or chapter 13 bankruptcy. The Government is trying to introduce different strategies to control the cases of bankruptcy which has reached to such heights that acts like the Bankruptcy Abuse Prevention and Consumer Protection Act makes it harder for individuals to file bankruptcy without taking resort to debt management solutions. Bankruptcy counseling was also considered as one of the ways to settle the issue for people by clarifying their financial stand and making certain things clearer for them.
One should always be aware of how to file for bankruptcy so that no one can provide wrong information and get away with it. However, not everyone can file bankruptcy as one has to be eligible for filing bankruptcies and secure professional help in the form of bankruptcy counseling.
Jennifer Jackson is a regular writer on bankruptcyonly.com, a US based portal, which provides detailed information on Personal Bankruptcy Information and Bankruptcy Lawyers, Business Bankruptcy Information and other related issues.
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