Did you know that Thomas Jefferson, Ulysses S. Grant, William McKinley, and Abraham Lincoln all filed for bankruptcy? And that in just one financial quarter in 2012, nearly 10,000 people filed for bankruptcy in indiana? Financial problems afflict many Americans, and for some, bankruptcy is the answer. However, bankruptcy takes a serious commitment that must be considered carefully beforehand, and the following bankruptcy FAQs can help you decide if it is the right decision for you.
Who files for bankruptcy? Anyone can file for bankruptcy, and those who do come from countless backgrounds. In addition to several presidents filing for bankruptcy, so have numerous celebrities, including Mike Tyson, Elton John, Larry King, Willie Nelson, Jerry Lee Lewis, and Anna Nicole Smith. In fact, even 75 percent of former professional athletes run into financial problems within the first two years of retirement. It does not matter how much money people make or what their professions are, everyone is susceptible to financial problems.
When should you file for bankruptcy? Most people file for bankruptcy when their debts severely outweigh their incomes. Bankruptcy law attorneys can advise you of the best course of action to take for your particular situation, as there could be several ways out. However, if you constantly receive phone calls from debt collectors and have no way to pay off your debts, bankruptcy might be the answer.
What is the difference between Chapter 7 and Chapter 13 bankruptcy? These are two common types of bankruptcy for individuals to file, but they result in different outcomes. In Chapter 7 bankruptcy, your assets, which can include your car and house, are liquidated in order to pay back your debts. Chapter 13, on the other hand, sets up a repayment plan over the course of three to five years, and Chapter 13 is usually only recommended to those who have a steady income.
If you are having financial problems, bankruptcy FAQs can help you decide if bankruptcy is right for you. While bankruptcy has the ability to completely wipe away your debt, many people see it as a last resort because of the time and effort it takes to file for it. By following these bankruptcy FAQs, you can determine which course of action will benefit you the most. Helpful research also found here.