It used to be the case that some consumers felt as though it was too hard to file for bankruptcy. They’d hold off on getting the support they needed with a fresh start because of the perception that they wouldn’t get their case dismissed and would then be responsible for dealing with all their debts. This caused many people to believe in this misperception about bankruptcy.
Chapter 7 bankruptcy is one of the most commonly pursued avenues for people to get a financial fresh start because it releases the filer from most debts, but allows them to keep critical assets like a vehicle and a house.
Filing for individual bankruptcy is often seen as a chance to start over for those in a major financial conundrum. Many people previously experienced a stigma attached to filing for a chapter 7 bankruptcy, however, individuals are the ones most often seeking help after they have taken on financial obligations like a student loan, an auto loan or a mortgage and don’t have the income to pay for it. Declaring bankruptcy will stop the creditor harassment program immediately.
If you can, set aside time to talk to a bankruptcy lawyer before you move forward with a petition for debt relief.
A new study completed by Debt.org found that there were more 844,000 bankruptcy cases filed in 2015. Up to 97% of those cases were filed by individuals. Many of the people filing for bankruptcy were not extremely wealthy. The American Bankruptcy Institute completed a study of public records across 2016, showing that more than 95% of the chapter 7 bankruptcy cases in that year were ultimately discharged, meaning that the individual no longer had a responsibility to pay back that debt. Those individuals who filed for chapter 13 bankruptcy were more likely to experience a dismissal with approximately half of people receiving a discharge and the other half receiving a dismissal. Exempt property is one of the most common reasons that people choose to pursue bankruptcy and it should always be discussed directly with an experienced bankruptcy lawyer before you initiate an application. Consulting with the right bankruptcy lawyer is crucial for your future.