The Finance Castle Rotating Header Image

Understanding Bankruptcy

As many consumers struggle with tighter lending standards, rising interest rates, and falling home prices, some may end up getting shaken out in a market environment like this. It’s not a pleasant thought, but just like business, some of us out there won’t be able to borrow the money we need to keep our financial lives in order and as a result may have to declare bankruptcy.

It’s important, then, to understand personal bankruptcy requirements, especially if you may be looking to file personal bankruptcy yourself.

With that in mind, if you’re wondering just what is chapter 7 bankruptcy, read on. According to the government site dedicated to matters of bankruptcy, chapter 8 begins when a debtor files a petition with the bankruptcy court in their area. They also need to file their schedule of assets and liabilities as well as current income and expenditure. From there, the debtor will provide additional information, pay fees, and go through the long, arduous process of getting all of their ducks in a row and hopefully emerging from bankruptcy to reestablish their financial lives. It may not be easy, but I’d expect to see bankruptcy numbers continue to increase as this recession wears on.

Always remember to keep away a stash of emergency money just in case you happen to lose your job or for unexpected expenses. Your future self will thank you!

essays on school uniforms

Comments are closed.