Who Files For Bankruptcy

The news is full of articles and pieces and the rising numbers of people filing for bankruptcy. Just who are the people who are filing for bankruptcy in record numbers? This answer is a mildly complex one. Bankruptcy court is a federal not a state court and the Bankruptcy filing process and form(s) requirement varies from court district to court district. One should thoroughly consider all the options before filing for bankruptcy.

First in order to file for bankruptcy there are several criteria that must be met. You must be experiencing things like a divorce, overwhelming medical bills, job loss with no chance of replacing lost income, you cannot afford to pay your mortgage, your bills are constantly past due and you are receiving notices as such or you cannot afford to pay only your credit card minimums or less. The filing of bankruptcy dose not alleviate your debts for things like taxes, student loans, alimony, child support or any fines due to the government. The economic downturn in America has lead all types of people like your friends or neighbors to file for bankruptcy. The numbers of bankruptcy filing are so prevalent that there is no longer a stigma attached to having filed or gone through a bankruptcy. In fact bankruptcy is an increasing option for those in financial trouble. There are those who have lost their jobs or have become under employed. Some people in the service industry like waiters and waitress have had their income and number of hours worked slashed in half. It is hard to pay all of your monthly bills on only half of your salary.

The high foreclosure rate is also driving the increasing numbers of bankruptcy filings. Many homeowners choose the option of bankruptcy to avoid losing their homes to the foreclosure process. The Miami area saw a 36% increase in the number of bankruptcy filings from 2009 to 2010 with another expected increase in 2011. Filing for bankruptcy will also have a lasting impact on your credit score and the amount of credit (if any) available to you in the future. Due to the increase in the number of bankruptcy filings the federal court system is experience a severe case back log and the bankruptcy process is taking longer to complete.

It is often advised that one retain the services of a bankruptcy attorney. There are many bankruptcy rules and regulations that must be navigated in order to successfully make it through the process with a positive outcome for your situation. Bankruptcy laws are also constantly changing and there are many Bankruptcy law firms and bankruptcy lawyers available to help you through the process. A recent search at findlaw.com for Bankruptcy attorneys in the Miami area netted 91 Bankruptcy Law firms and or Bankruptcy Lawyers. So just who is filing for bankruptcy? All types of people from the wealthy to the impoverished. At some point in your life everyone will experience financial troubles, some temporary and some long lasting.

Sources

Bankruptcy and Debt Center