America is a country of debt. Forty three percent of American families spend more money than they earn annually. The United States government spends money like it isn’t out of it. Of course, the entire world knows that China is acting as the country’s personal credit card. Since the economic downturn that began in 2008, American citizens are experiencing a reckoning with their overzealous spending in unfortunate, oftentimes permanent ways. The collectors are ostensibly calling every minute. The bills keep coming in the mail. Stresses are mounting for both the borrower and the lender. For the borrower at least there is relief in the form of bankruptcy.

Although bankruptcy filings fell by nearly two hundred thousand in 2011 when compared to 2010 and that downward trend is continuing, it isn’t an indication of an improving national economy. Instead, American citizens are realizing that bankruptcy isn’t a cure all for their financial problems. A good bankruptcy attorney can tell you that filing bankruptcy can’t fix every issue you might have but it’s a good place to start.

Bankruptcy lawyers can help their clients to figure out which type of bankruptcy they qualify for. Chapter 7 bankruptcy and Chapter 13 bankruptcy are just two types. Chapter 13, for example, is an option for people with unsecured debts totaling under just south of one point one million dollars. An unsecured debt can be something like a credit card. Chapter 13 is also available to those with secured debts totaling less than three hundred sixty thousand. The most common type of bankruptcy varies by region and circumstance. In 2011 Michigan, for example, only sixteen percent of bankruptcy filings were for Chapter 13.

Those who are finding themselves completely underwater with their debts should look into all options before considering insolvency. However, if it turns out there are no options left then researching all available information on filing bankruptcy and talking with reputable bankruptcy attorneys is a great place to start. These lawyers can help educate their clients on the benefits of filing bankruptcy, on Chapter 7 bankruptcy and other types, and help to get lives back on track. Read more blogs like this. Learn more at this link. Get more here.