Bankruptcy can seem like an abstract concept at times.
It always seems like an issue that happens to someone else. A business, an individual who’s hit rock bottom, doesn’t matter. When it lands on your doorstep and demands your attention…it’s easy to be nervous about what’s to come. This is where a low cost bankruptcy attorney comes into play. They can provide you with a reliable step-by-step process to not just provide you the right kind of bankruptcy option, but a means of moving forward.
You don’t have to face up to all this pressure alone. Here’s what you should know about bankruptcy.
What’s The Biggest Cause Of Business Bankruptcy?
Businesses comprise the smallest amount of bankruptcies compared to individuals. That said, they also tend to comprise the highest costs. Businesses that file for bankruptcy always do so as a last resort, when they can’t find debt relief or support otherwise. Mismanaging money is an obvious reason, followed close behind by a personal issue that ripples throughout the company. A recent study determined less than 5% of all bankruptcies today are submitted by businesses.
What About Individual Bankruptcy Issues?
Individual bankruptcy, on the other hand, is the most common request a bankruptcy law firm will be faced with. Bankruptcies resulting from unpaid medical bills affected around two million people in the United States back in 2013. Similar issues include bankruptcies caused by credit card debt and homeowner debt. Choosing the right kind of bankruptcy can set you up for success down the road. This is best done with the aid of an attorney, someone who can look at your situation with an experienced eye and save you the hassle of searching.
What Is A Chapter 11 Bankruptcy For?
If you’re a business or corporation that needs help with mounting financial pressure, the Chapter 11 bankruptcy might be your best bet. This is a necessary legal intervention to provide businesses of all shapes and sizes the means of organizing their finances. This can include (but isn’t limited to) organizing assets, improving ROI, and making sure all parties are on the same page. A 2013 study found there were nearly 9,000 Chapter 11 bankruptcies filed within a year’s span. It’s better not to wait until things get worse before reaching out to a bankruptcy attorney in your area.
What Is A Chapter 13 Bankruptcy For?
For those that don’t have a business to their name, a Chapter 13 bankruptcy could be the relief you’ve been looking for. The year 2013 also saw a staggering 335,000 Chapter 13 bankruptcies filed. What qualifies you for this form of bankruptcy includes the amount of debt you have and the amount of secured debt you have. If this is denied your options aren’t completely out yet. Make sure to ask your low cost bankruptcy attorney about alternatives should you be faced with another hurdle.
What Should I Ask A Low Cost Bankruptcy Attorney?
You don’t want to be left in the dark with your livelihood on the line. Your low cost bankruptcy attorney is an experienced professional that can add a much-needed second opinion on your situation. Not only will you have your questions answered, you might be faced with a shorter wait time. A Chapter 7 bankruptcy, for example, takes around six months to complete. It will, however, stay on your credit report for up to 10 years after it’s arranged. The state you live in will also have an impact on how much filing will cost.
Bankruptcy can happen to anyone. Make sure you have a professional on your side if it does.