Bankruptcy in Indian is not as uncommon as you might think. Nine thousand one hundred and thirty one people declared bankruptcy in Indiana’s third quarter of 2012. That is roughly one hundred people per day. During this same time, one out of every 747 housing units received a foreclosure notice. These statistics are not to say that there is nothing to do about falling on tough times. If anything the prevalence of instances just like yours means that there are well developed ways to help you improve your circumstances.
You may have heard bits and pieces of conversations – people considering something like chapter bankruptcy. You may be wondering if chapter bankruptcy can be your solution. So, chapter bankruptcy, what is that?
The first question: what is chapter bankruptcy, and how does it work.
Bankruptcy is the process of eliminating or repaying most, if not all, debt. This process can be taken by both private consumers and businesses. Although the idea remains the same no matter what kind of bankruptcy is filed, the specifics change. Because bankruptcy works to either eliminate or repay all debts owed the options for bankruptcy are based on the filers ability to do either of those things. Bankruptcy options are known as chapters.
When should you file for bankruptcy?
Filing for bankruptcy is much like pulling the ejector seat on a diving plane. It is not always necessary if you can pull the plan up with your own due diligence. However if you find yourself dive-bombing there is a time and place for pushing that spring loaded bail out button. The right time for you can be something you discus with attorney. In a quick consultation – these are generally free – an attorney can give you bankruptcy tips and tricks on how best to maneuver through the oncoming filing. They can tell you the difference between chapter 7, chapter 11 and chapter 13 bankruptcy filings. All of these will ask for different levels of commitment and property or capital retrieval. In order to qualify for Chapter 7 bankruptcy the filler must pass a means based test.
One of many bankruptcy myths is that the filer will never recover. This is absolutely false. The business mogul Donald Trump has filed for bankruptcy four times. It is possible to rebuild credit after filing for bankruptcy. MasterCard may have been the first company to protect against credit fraud with holograms on its cards, but even the best of credit companies cannot protect consumers from poor planning. The key to reclaiming a financial future after filing for bankruptcy is to plan for it.