Bankruptcy - Facts and Trends

Many people believe that declaring bankruptcy is the end of the world. But in reality filing for bankruptcy is what a wise and farsighted person will do. Contrary to this popularly held false believe doesn't mean the end of the world. It is time that the myths surrounding bankruptcy be broken and the real picture be shown to the people.

Myths Commonly Associated With Bankruptcy

 

• Bankruptcy Is Always The Defaulters Fault: No, it is not always the debtors fault. There are several bigger forces that affect the market and on which simple, working people have no control over.

 

 

• Bankruptcy Ruins Credit System: Once again, bankruptcy doesn’t ruin the credit system. In fact nothing can prevent you from getting a good credit score once you have discharged your debts.

 

 

• You Will Lose Ownership of Home, Cars etc.: There are several chapters and clauses mentioned under the Bankruptcy Code that assures that you do not necessarily need to lose your property or your car if you file for bankruptcy.

   

  Facts That Everyone Needs to Know About Bankruptcy

   

• Bankruptcy Can Prevent Foreclosure: Filing bankruptcy at the right time means you can stop the foreclosure of your house allowing you to keep it.

 

 

• Avoid Repossession: If there is a threat that creditors might claim repossession of your property or your car, filing bankruptcy at the right time might even lower your repayment percentage.

 

 

• Benefit for Married Couples: Many married couple believes that if a spouse’s financial conditions have hit a roadblock, the other spouse will automatically be affected. But this is not the case. Even after being married, you can file a bankruptcy individually. In this case, all the debts will be in your name and your spouse will not be affected.

   

• Allows You To Keep Your Property and Car: If you want your property and car to remain with you even after declaring bankruptcy, all you need to do is act wisely. The trick is to file bankruptcy at the right time and under the appropriate chapter. It is always advisable to consult a Bankruptcy Attorney

 

 

• Bankruptcy can be Filed Secretly: Everyone need not know when you file for bankruptcy. Very few people can find out if anyone has filed a bankruptcy. Only the attorney, the creditors and the courts are in the know-how.

 

Bankruptcy Trends As Seen in 2012

Bankruptcy reports released in the year 2012 have shown some positive trends. According to the reports published by the Administrative Office of the U.S. Courts, there has been a considerable decline in the number of bankruptcy filed during 2012 as compared to those filed in 2011. The states of California, Florida and Michigan have recorded the most number of filings while states like Idaho, North and South Dakota, Ohio etc. have shown a considerable decrease in the number of bankruptcy cases that have been filed.

In the year 2013, there is an expectation that the number of bankruptcy cases could increase. The reason behind this is – many defaulters from 2005 (who filed under Chapter 7) can file once again.

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