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Published on October 20th, 2015 | by Personal Rights

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What is a Chapter 13 Bankruptcy and How Can It Help Me Repay My Debts?

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In the last decade, some of Wall Street’s biggest players crumbled to bankruptcy. There are nearly 1 million Americans facing distress each year by filing bankruptcy. Although in many cases bankruptcy is an all too late sign of things to come, having a legal team prepared may save you from having to file bankruptcy.


Illness

Many people may be surprised to know that illness or medical bills were responsible for up to 62% of bankruptcy filings in the U.S. according to the American Journal of Medicine. In many cases, these individuals have been denied a disability claim or are simply unable to keep up with ever-piling bills. If you believe that bankruptcy is going to be an inevitability, call a bankruptcy attorney today.


Business

When most people think of bankruptcies they think of the big ones that make the news: big businesses going under. In 1980 businesses accounted for around 13% of bankruptcies, making them a fairly common occurrence. Today, however, businesses add up to only 3% of bankruptcies. When businesses do go bankrupt, it is not uncommon for them to do so intentionally to settle debts for good.


What to Expect

A recent study from 2011 found that 60% of all bankruptcy filers have salaries equal to or less than $30,000. Another study found that 8% of bankrupt Americans are repeat fillers who have filed at least once before. Having a lawyer is crucial as attorneys generally have a 95% success rate when it comes to settling Chapter 7 bankruptcy claims. Your average Chapter 7 bankruptcy costs between $1,500 and $3,000. For the average working person, a Chapter 13 bankruptcy may be the best option. A Chapter 13 bankruptcy claim allows the individual in question to develop a plan to repay their debts, making it ideal for those in lower tax brackets.


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