Over the last four years, many Americans have been faced with some kind of financial distress. The lucky ones are finding themselves with the lack of overtime that they got in the past. Living on a smaller amount has become a new way of life in the US. Many people are making less money but still spending the same amount by using their credit cards. At some point, it has to end for these folks that are living way beyond their means. Before it gets too late, everyone should educate themselves about filing bankruptcy.
It’s not only here in the United States, but this problem runs worldwide. The news has been reporting on the financial collapse in Europe with Greece on the verge of bankruptcy. The funny thing is, it seems like no one saw it coming. Now the country is being forced with drastic austerity measures to try and turn things around. Most experts are saying the only way out of this problem is defaulting on their debt and filing bankruptcy essentially. It’s everywhere you look and credit is the culprit.
It’s not as hard as it was in the past for someone to educate themselves about filing bankruptcy. Basically, there are two chapters of personal bankruptcy. The first one is Chapter 7 bankruptcy, which is best used for individuals with large amounts of unsecured debt. The second one is Chapter 13 bankruptcy which is otherwise known as a wage earner bankruptcy. This is for the people who make a decent living but have let their debts get out of control. One of the top benefits of a Chapter 13 bankruptcy is protecting property. Because of the repayment plan, the automatic stay is in place the entire bankruptcy which typically lasts 3 to 5 years.
Although this is just a snap shot of personal bankruptcy, it’s now easy to spend a little bit of time and get basic knowledge of the bankruptcy filing process without consulting a bankruptcy attorney. Over the last 10 years, the Internet has grown with large amounts of information on legal matters including bankruptcy. Prior to the Internet, the only way someone can learn about filing bankruptcy is to buy a book or to consult a bankruptcy attorney. Now, it can be conveniently learned about from the security of your own home. So there is no excuse of why you can’t . When searching the web for information, one should always make sure the websites are current. Since bankruptcy is a legal proceeding, the information is very time sensitive as laws are continuously changing. After gathering a wealth of knowledge it’s a good idea to jot down the unanswered questions that pertain to your particular situation and make an appointment to consult a bankruptcy attorney for the answers.