Do You Need to Know When to File for Bankruptcy?
As you might be aware, there has been a significant increase in the number of bankruptcy filings, both personal and business. In the state of Michigan alone, there were more than 56,000 bankruptcy filings. However, other figures show that nationwide, bankruptcy filings fell by nearly 182,000 in 2011 when compared to 2010. Unfortunately, many families find themselves facing financial difficulties. Nearly half, or approximately 40 percent spend more than they earn each year. No one is immune to problems that can lead to bankruptcy filings. According to the Institute of Financial Literacy, more than 27 percent of all people filing bankruptcy hold a least a bachelors degree.
In light of these facts and figures, you may be asking about when to file for bankruptcy. This can be a very emotional and uncomfortable situation; however, there is help and you can find information about bankruptcy rules, and when to file for bankruptcy.
Before determining when to file for bankruptcy, you should consult with bankruptcy attorneys. These professionals can discuss your individual situation and also determine when to file for bankruptcy as well as the type of bankruptcy you may want to file. For instance, you need to understand the difference between Chapter 7 and Chapter 13 bankruptcy.
Chapter 7 bankruptcies use what is known as liquidation. In these cases, some assets of the debtor is turned over to a court trustee and liquidated to pay down some of the outstanding debt. During Chapter 13, the debtor may be able to settle some of the debt through a repayment program.
After determining when to file for bankruptcy and what type of filing, your attorney will help you through the process. This will include completing the required documentation and court papers. You will need to provide documents such as tax returns and bank statements. When to file for bankruptcy can also have different time frames for each step depending upon the state regulations. Your attorney can help make the process go as smoothly as possible.
After determining when to file for bankruptcy and getting the resolution you need, you may be able to start rebuilding your finances with the help of these attorneys.
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