A few years ago people viewed personal bankruptcy as a problem for the poor people of the country. However, since the economic crisis in the year 2008, this legal matter has taken a new face. There are people who reside in the United States with 5-6 figure incomes filing for bankruptcy because of blunders or negligence with handling money. The affluent people in the country are now forced to file for such cases. The recession in the economy has definitely affected the lives of many. A survey reveals that individuals who have filed for bankruptcy in the past few years have earned over $70,000 in just one year. The real estate market continues to fall down and no economist can determine when or where the prices will stop. This has become a problem for many businesses around the world because they cannot decide whether to hire more employees. There is uncertainty in market and business owners do not know what is in store for their business in the near future.
The major groups that have been filing for bankruptcy are realtors, mortgage brokers, and contractors. These people were the first to face issues because of the recession and chances are that they will be the last people to recover. People have stopped buying houses, good for their homes, and electronics. Individuals have to face tight budgets and this affects even the person running a local restaurant because people do not have the extra cash to eat out.
It is important for you to understand that filing for bankruptcy is not suitable for all cases. You will need to take care of obligations like alimony, student loans, and child support before you take the next step. However, there is a possibility of discharging the student loan if you are able to prove that paying back the money would lead to further financial crisis. People who have disabilities can win their case because there is no chance that they can repay all of their pending debts.
You can check the chapters online or ask your attorney to help you understand the legal information for discharging your debt. The rules for filing bankruptcy changed in 2005. Make sure that you get all of the information required. Every personal bankruptcy case is different and this is why you should focus on the tedious aspects of your case. Hire an experienced lawyer and relieve all of your debt in order to start all over again!
The author of this article publishes weekly articles on personal finance, bankruptcy and payday loans. Take a moment to check them out at: treatmoneywise.com
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