Bankruptcy is one of the most common issues facing everyday Americans today. With medical bills on the rise and student loans causing many to seek alternatives, it’s unlikely bankruptcy filings will go down anytime soon. As a result more and more people are seeking the aid of bankruptcy lawyers to help them with payment plans, distribution and financial advice to get back on their feet. If you’re not sure where to begin, the list below will explain the function of bankruptcy and how it relates to your life.
What Is Bankruptcy?
Bankruptcy is the legal action of surrendering property and assets when an individual is unable to repay owed debts. While this can be decided by an outside party, many take it upon themselves to file for bankruptcy. There are multiple different cases for bankruptcy claims, ranging from paying off debt to a one-time service, and a bankruptcy lawyer can assist you with the necessary applications and fees moving forward. If you’re unsure why people file for bankruptcies, take a look below.
Why Do People File For Bankruptcy?
Although there are many different reasons people file for bankruptcy, some have proven more common than others. Back in 1980 businesses accounted for nearly 14% of all bankruptcies. Compare this to the modern day where they only add up to around 3%. Studies have consistently shown the vast majority of bankruptcies being done by individuals and small business owners. Frequent reasons for bankruptcy cases include, but are not limited to, medical bills, student loans, business failure, divorce and personal injury. As such, personal injury claims frequently crossover with this field.
What Kinds Of Bankruptcy Claims Are There?
There are different forms of bankruptcy depending on your unique situation and the assets involved. A Chapter 11 case, for example, is used when there is an attempt to keep the business or company in question afloat. This usually involves payment plans and future goals on both the behalf of the applicant and lawyer. Chapter 7, on the other hand, is a one-time goal that involves selling assets in order to help the individual pay off their debt. A Chapter 7 bankruptcy case can cost anywhere from $1,500 to nearly $3,000. The aid of an attorney, however, can see the success rate for Chapter 7 bankruptcy claims reaching 95%.
What About Civil Lawsuits And Personal Injury Claims?
Bankruptcy and civil lawsuits can cross over from time to time. Over 20% of federal civil personal injury lawsuits have resulted from vehicle crashes, with another 14% arising from products liability injuries. This can cause a significant increase in medical bills and fees, leading some to file for bankruptcy when they are low on options. Studies have shown more than 28,000 infants per year being born with a birth injury, adding up to over 2,000 per month and 530 per week.
Who Can Help Me File For Bankruptcy?
If you have explored all your options and have realized the best method of action going forward is filing for bankruptcy, your first step is to contact the appropriate parties. A bankruptcy lawyer can figure out which bankruptcy case is necessary for your situation and help you with either paying off your debt or reorganizing your assets to get your life back on the right track. If you have additional factors such as disability or workers’ compensation to take into account, your local law firm can assess your needs and get you the assistance you deserve. Consider meeting with a lawyer today and figure out whether or not you need to file for bankruptcy.