Bankruptcy can be a useful process for individuals that are suffering through tough financial times. These individuals may be unsure of how their future will work out if their finances are not in order. This can create some stressful times. It may even be more stressful for individuals that have a family to provide for. For other people, it can be a difficult time if a business they have owned for years is suffering. They will not want to lose their investment and see their dream fail. This can be difficult for anyone involved. That is why bankruptcy can be an option. Although it may seem like admitting defeat, it is not. Bankruptcy can help individuals struggling through financial hardships. They may be able to fix their financial situation, which can lead to a brighter future. Although money is not everything, it can be difficult to live a comfortable life without it. To make a more sufficient living, individuals may have to address their debts first.
When people file for bankruptcy, an automatic stay will go into effect. This occurs for Chapter 7 bankruptcy, Chapter 13 bankruptcy and even business bankruptcy, Chapter 11. For each process, it can be beneficial for the debtor. These individuals will not have to face harassment from creditors that they owe money to. These creditors will be barred from contacting them once their paperwork is completed and filed. This can prove to ease the stress of these individuals. They do not have to face any more interactions from angry creditors demanding their money back. By barring this from the scenario, it can create a less stressful bankruptcy process. Debtors can get the space they need to plan for their future.
Who can file for bankruptcy?
Bankruptcy proceedings can be done by individuals and by business owners. However, these individuals should fit certain eligibility requirements first. They may have to go through credit counseling or attend a debtor education course before the process. For each chapter of bankruptcy, there may be different prerequisites. Some individuals may have to pass the means test. This test is set to determine their median income. If their income in their household is higher than the median income in the country, they may not be eligible for bankruptcy proceedings. However, sometimes there are exceptions made. This can depend on each individual case.
If you require the services of an experienced Business Law or Bankruptcy attorney, contact the Law Offices of Allen A. Kolber, Esq. today to schedule a consultation and discuss your options.