Many people fall into financial difficulties and find that declaring bankruptcy would be the only way to give them a fresh start. Individuals and businesses can file bankruptcy when they find they cannot pay what they owe to creditors. It takes a court order to be finalized and is brought to the courts by lawyers or the debtor.
In the United Kingdom, only individuals can claim bankruptcy. Businesses must file proceedings called administration or liquidation financial difficulties or insolvency. Bankruptcy has a broader meaning in the United States. It applies to many kinds of financial difficulties, whether it be a business or an individual.
The United States has a financial instability among the elderly. They are so used to paying their bills with credit cards, but now that option has turned to a large debt for most. While they were working, they had the money to pay their credit card debts. Now that they are looking at retirement and only having their Social Security, they do not have enough funds for all their bills.
There was a boom of elderly Americans filing for bankruptcy in 2016. It sky rocketed to nearly 480 percent up from where it was in 1991, for those seniors over 65 years of age. For those seniors over 75 years of age, bankruptcy has soared by almost 1,000 percent.
Bankruptcy filing by seniors is not due to them being negligent on what they owe. Seventy percent of those that filed said it was because they had insufficient retirement income, they lost their job or mounting medical bills. Many debtors struggled for years to pay off their debts but found that bankruptcy was the only way they could survive their retirement years.
Most people choose to use an attorney when they are financially strapped and thinking about bankruptcy filing portland me. An attorney can help you decide which bankruptcy filing would be best for your situation. Each chapter has different purposes and circumstances available.
Once you or your attorney has filed the proper paperwork with the courts, all actions like phone calls and letters to you must cease. Creditors cannot demand payments from you once it is in the courts. Creditors must then only contact you through your attorney. Filing a bankruptcy will also be reported on your credit reports. Your credit score will start to improve once you have received your discharge from your creditors or bankruptcy final papers.
A bankruptcy can help to remove legal responsibility of payments to your creditors. When finalized, it is called a discharge of all your debts that you have filed for in the bankruptcy. It will also stop foreclosure on your home and get rid of the liens on your property. Vehicles cannot be repossessed, and repossessed vehicles can be returned. Wage garnishments will be stopped, and creditors can no longer harass you. Your attorney will go over everything with you and let you know exactly how your financial situation will change and how you will benefit by filing a bankruptcy.
