How A Lawyer Can Help You Bounce Back From Bankruptcy

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Bankruptcy. Nobody wants to file for bankruptcy, but the fact is that it happens every day. People file for bankruptcy because, for some reason or another, a person has run short on funds and are unable to pay their bills or financially care for themselves. That’s the most basic thing we know about filing for bankruptcy. But the fact is that the issue is more complex than that, and the number of people filing for bankruptcy each year is by no means small. In fact, about 1.5 million people file for bankruptcy each year, according to recent studies in the U.S. Why are so many people filing for bankruptcy, and for that matter how does it work? Well, you can’t file for bankruptcy alone — you need a legal representative. Without a bankruptcy lawyer on your side, you not only are subject to the risk of a failed claim; you also risk filing for the claim incorrectly and wasting money that you already don’t have. Already, the average Chapter 7 claim costs about $1,500 to $3,000. Another issue is the filing fee. For a Chapter 7 case, the filing fee is $335; for a Chapter 13 case, it’s $310. You need your claim to work. Below, we’ll look into the nuances of bankruptcy filings — from the differences between personal and business filings, to why you’ll need a legal representative.

Business Bankruptcy Filings

So, how many people file for bankruptcy for business purposes? It’s a vast majority. It’s said that 97% of the bankruptcy filings are done for business reasons, while 3% are done for personal reasons. Business is risky, and many people think that they have great ideas when in fact they’re about to fail. This isn’t completely your fault. It’s easy to be misled in business, whether by a lack of experience or a poor partner. Those filing for bankruptcy for business reasons may have the personal funds that they need to live. But they don’t necessarily have the personal cash flow that they need to maintain their business and pay off any debt that they’ve accrued due to the running of their business. Filing for bankruptcy is never an easy choice, and some business people think that doing so will ruin their futures in the business world. But it’s better to file for bankruptcy when you need to than cross your fingers and hope for the best. Certainly, you can still have a future in business after filing for bankruptcy.

Personal Bankruptcy Filings

While personal bankruptcy filings do happen at a much lower rate than business bankruptcy filings, happen they do. These filings occur because people don’t have the money they need to pay off personal debts or frankly even live as they should. This happens with increasing frequency, in part because it’s all but impossible for some people to go to school without loans. It’s said that about 1% of people who file for personal bankruptcy do so due to student loans — this accounts for 15,000 filings. On the other hand, medical expenses account for 62% of all personal bankruptcy filings. Medical emergencies can happen at any point in time, and many of us just aren’t prepared for that. It’s estimated that 75% of Americans live paycheck to paycheck, and 27% don’t have any savings at all. For that matter, fewer than one in four Americans have enough money saved to keep them steady for at least six months in case of emergency.

Why You Should File With A Legal Representative

A legal representative is an asset for those filing for bankruptcy. To get relief, you need to have a successful claim. Many people file for Chapter 7 bankruptcy with no success. With the help of a legal representative, you’ll see a success rate of over 95%. The fact is that if you need to file for bankruptcy, you need someone on your side. A lawyer can not only help you file your claim, but make it a success.

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