Bankruptcy is a process where the judge and the court decides whether an individual or business can discharge their debts. Bankruptcy was created to help people who are dealing with severe financial problems by giving them a chance to start over.
Who Files for Bankruptcy?
Most of the people who file for bankruptcy are not wealthy. 60% of filers make under $30,000 per year. Anyone with debts they can’t pay off in a reasonable amount of time can file. Sometimes it’s bad spending habits, but many times bankruptcy occurs as a result of financial hardship like medical bills or the loss of a job.
When to File for Bankruptcy
There is no such thing as a perfect time to file for bankruptcy. If you have fallen behind on your bill payments and can’t find a way to catch up, then it may be a good idea to file for bankruptcy. You should also file for bankruptcy if you will not be able to get out of debt within the next five years.
It is important to remember that bankruptcy was set up to give a person a second chance, not to punish people.
Things To Know When Filing for Bankruptcy
Bankruptcy can be a long and drawn out process. The amount of time that it takes to go through bankruptcy will depend on the type of bankruptcy that you file for. You may be able to complete Chapter 7 bankruptcy in just four to six months.
It will take you three to five years to complete a Chapter 13 bankruptcy. Chapter 11 bankruptcy, which is for business owners, will typically take one or two years to complete. Regardless of the type of bankruptcy you file there will be a lot of research into your finances so that the problems can be corrected and place you on a much better footing!
Find out more about Bankruptcy in our guide: All About Bankruptcy
Learn about the ways bankruptcy can help you. Contact us for a free consultation by clicking here or calling (912) 351-9000. We’re here to help you gain the financial freedom you deserve.
The Law Offices of Barbara B. Braziel proudly serves the greater Savannah, GA area. We are a debt relief agency. We help people file for bankruptcy relief under the U.S. Bankruptcy Code.