Bankruptcy has become one of the most filed case annually. There are over 1.5 million people filing to get themselves out of the debts by proving them bankrupted. The judges look at the assets and property of the debtor who has initiated the filing and declare it discharged or dismissed. Bankruptcy is like a second chance that lawmakers wanted to provide to everyone who could do good decision-making or fortune hit him badly. This is a way to restart your business with everything settled down. There are a lot of cases in all the states of USA. People are looking for bankruptcy lawyer San Antonio to file the suitable case for them. Following are the reasons why people file bankruptcy.
Bankruptcy is caused by shortage of money which can happen in many ways. Here are some of the most known reason why one can go bankrupt and must look for a bankruptcy lawyer, San Antonio.
- People which health insurance and medical expenses file bankruptcy, according to a research, 71% people filing bankruptcy undergo the above-mentioned problems
- People going jobless go bankrupt quickly. Because even if they have savings, they can be depleted by the expenses. Yet goodness knows when one’s going to get a new job.
- A company may reduce the salaries of employees and it may lead them to bankruptcy. When the already little salary of employees is decreased more, it makes the living hard for them.
- Married couples can sign debts and what if they’re divorced? This can be costly for the spouses and the other expenses may also lower the savings and bring down the assets badly.
- Anything can happen at any moment. One can undergo a car breakdown, or a storm can cause a damage. These emergency expenses are jaw breaking and they can often bankrupt someone.
- 15,000 students file their bankruptcy for their student loan each year in US. So, if you haven’t paid the loan yet, you can file a bankruptcy.
Types of bankruptcy
- The most common and misunderstood type of bankruptcy is chapter 7. People think that it’ll discharge all the debts away and you’d be free. Yet, this bankruptcy liquidates the assets of a debtor to free him off the debts. Debtor may get to keep some property, but he must give up rest of it.
- Chapter 12 and 13 bankruptcy filing is for farmer families and individuals respectively. In this bankruptcy, the debtor gets to keep all of his property and liabilities. Nothing is sold and yet the debtor pays only a little amount of the actual debt. Mostly 25 to 40 cents of a dollar.
- Chapter 11 is basically the same as 13 but it was made for large organizations and corporations. In this type of bankruptcy, the money in hand and current assets of the company doesn’t matter. Now individuals can also file this.
Getting a lawyer
You can get a bankruptcy lawyer San Antonio to file your bankruptcy if you’re undergoing a financial crisis.