Definition
Bankruptcy is a federal law that allows individuals, married couples, and businesses to eliminate or restructure their debts when having financial difficulties. For some, bankruptcy can provide a much needed fresh start.
Bankruptcy law is federal statutory law found in Title 11 of the United States Code. The bankruptcy code is divided into a number of chapters, namely Chapter 7 ("Liquidation"), Chapter 11 ("Reorganization" for businesses), and Chapter 13 ("Adjustment of Debts of Individuals with Regular Income").
How to know if bankruptcy may be right for you?
- Are your credit cards maxed out?
- Are you paying over limit fees and late fees?
- Do you need to use your credit cards to make everyday purchases?
- Are you able to make only the minimum monthly payment?
- Do you use one credit card to pay another?
- Have you lost your job?
- Have you cashed in you retirement plan?
- Are you working overtime just to make ends meet?
- Have you pawned cherished items to pay bills?
- Have you used payday loan services?
- Are you losing sleep worrying about your finances?
- Is your financial situation affecting your emotional well-being? Your physical well-being? Your marriage?
Bankruptcy is never part of anyone's financial plan. Most people don't find themselves thinking about bankruptcy because of something they did wrong. Typically, it is an outside factor, like a divorce, job loss, failed business, etc. Bad times can happen to good people. Making an economic decision for your family is similar to a company making a business decision. You deserve to have the same protection as GM, Filene's Basement, Circuit City, and Peanut Corp of America. Bankruptcy is a federal protection designed to assist during bad times.