The Case For Bankruptcy When You’re in Debt in a Tough Economy

he accused White House state party crashers in the fall of 2009 were found to have financial trouble. According to bankruptcy records, the White House crashers business is more than $2.1 million in debt. Their car and boat, valued at $150,000 and $90,000 respectively, were repossessed. Although they knew of their financial state, the couple continues to live with expensive tastes including hiring limousine service and running tens of thousands in credit card purchases.

Why People File Bankruptcy

In a tough economy, filing for bankruptcy may be the last resort for many individuals struggling with their finances. Many homeowners choose to file Chapter 13 to save their homes from facing foreclosure and catch up on their debt. Other individuals choose Chapter 7 to gain relief from creditors harassing them. Business owners choose to file Chapter 11 to catch up on bills that were not able to pay. No matter what your reason to file bankruptcy, it is best to contact a qualified Washington DC foreclosure attorney who can assist you with your request.

What Bankruptcy Chapters Benefit Debtors

Bankruptcy, despite its ugly nature, can be beneficial for many individuals suffering from high debt. Keep in mind there are certain requirements that must be met before a court will grant the approval of bankruptcy. Due to complex bankruptcy laws, it is recommended you speak with an experienced Washington DC foreclosure lawyer who can answer questions concerning these laws. Below you will find some of the benefits from filing bankruptcy:

• Chapter 7 – A person who is in serious debt will have certain debts discharged. Harassing calls from creditors will be ended and the garnishment of income can be stopped. Courtesy of the bankruptcy court, you will gain new information about correctly managing money. A Washington DC Chapter 7 attorney can help these filers gain a fresh start.
• Chapter 11 – A business will still be able to continue its operation. A business can restructure its secured debt to where they can repay their debt and back taxes over a longer period of time. Unprofitable leases and contracts can be terminated. Unsecured creditors may be partially repaid. All debts that can be classified as dischargeable.
• Chapter 13 – An individual filing under this chapter can consolidate their debt into one payment they can afford. Homes that are facing foreclosure can be saved. A filer may be able to keep their car and income tax refund. Certain debts can be discharged.

If you or a loved one is considering filing for bankruptcy, you should contact a Washington DC foreclosure attorney.

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