March 1, 2010
In Need Of Personal Bankruptcy, Let The Bankruptcy Code Work For You
What are the qualifications to file bankruptcy? This seems to be a major concern for many people. The truth is that if you are having trouble paying your bills, you probably qualify to file for bankruptcy protection under the bankruptcy act. Businesses can file either a Chapter 11 or Chapter 7 bankruptcy and consumers can file either of those two or under Chapter 12 or 13. Chapter 11 is certainly used by businesses to reorganize their debts. But it too can be used by individuals, predominantly when they don’t meet the criteria for Chapter 13. Anyone, business or not can file for Chapter 7 protection. The only limitation is that a consumer can file only if their income does not greatly exceed their expenses. Incomes vary from state to state under the bankruptcy code. If there is excess income, generally a consumer can file a Chapter 13 bankruptcy.
Don’t worry about the humiliation often associated with filing for bankruptcy, that’s the purpose of getting a fresh start is to stop the self blame and helplessness and give yourself a second chance. Most people contemplating filing bankruptcy are at the end of their rope and there is little else they can do to right their economic ship. But filing for bankruptcy isn’t the end of the world, it’s a new beginning, and in this era of the current financial crisis, rising unemployment and increasing house values, it may be the best thing to do. The bottom line is that if filing personal bankruptcy will get you a fresh start and help you reestablish a healthy credit score sooner rather than later you should seriously consider it. If conservative financial consultants are encouraging filing bankruptcy it’s obviously time to recognize that it has become the most acceptable and reasonable way to deal with the personal financial crisis.
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