In 2017, fewer than 500,000 people in America declared bankruptcy. But in the right circumstances, bankruptcy can wipe your financial slate clean, allowing you to rebuild damaged credit.
Congress made changes to the United States Bankruptcy Code in 2005 in order to make it harder for people to file for Chapter 7 bankruptcy. You now need to meet certain criteria in order to file Chapter 7. You must fall below the median income in your state and pass a means test to calculate your debt.
Despite the fact that many people would qualify to file, thousands choose not to for various reasons. Some people are deterred by the filing fees, and others decline to file because of the stigma that, unfortunately, still surrounds bankruptcy. However, the most common trigger for bankruptcy is medical bills, not failure to adequately control one’s finances.
If you are interested in exploring bankruptcy, speak to an experienced bankruptcy attorney about your financial options. He or she can help you figure out if you qualify and assist you with filing.