Fewer individuals are filing for bankruptcy, which is a great sign after the crisis boost in the past few years. However, the high cost of even filing for bankruptcy makes it too expensive to some people.
Not as many bankruptcy filings
The meltdown of the financial system and housing industry along with the sub-sequent increase in joblessness between 2006 and 2008 led to a large number of people declaring personal bankruptcy. In 2008, according to the Deseret News, national bankruptcy filings increased 33 percent over 2007, which increased another 32 percent from 2008 to 2009.
In 2011, there was a 12 percent decrease in the amount of bank-ruptcies field to 1.4 million, according to the New York Times. There were also decreases seen in 2009 and 2010, when filings for Chapter 11 and 7 increased only 8 percent.
The good data is not really all that good whenever you consider the people are not declaring bankruptcies because they just cannot afford to, according to CNN.
Cash needed to file
Many people use their tax returns to file for bankruptcy now considering it is costly. It costs $1,500 at the very least to file Chapter 7 bankruptcy and that is a figure most people cannot afford. About 200,000 to 1 million people throughout the country cannot afford bankruptcy with those figured.
When that $1,500 is split up, $1,000 will go to the lawyer, more than likely. About $85 will be spent on pre-bankruptcy counseling and educa-tion courses that are legally required for those declaring bankruptcy and another $300 will be put towards the mandatory court fee for filing.
Get around the rules
Declaring bankruptcy is much more difficult now that the 2005 Bankruptcy Abuse Prevention and Consumer Protection Act have come out. This is why there are so many expenses and paperwork needed to file. That means that someone has to pay a lawyer even more cash to do all the paperwork. It makes it more difficult for the poor to declare bankruptcy, although the law was intended to keep people from filing for bankruptcy without cause.
There are some attorneys who do not need payment to do the case. There are many places you can go to find these attorneys. If a person's income is 150 percent or less of the federal poverty level, than a person can waive filing charges.
Not as many bankruptcy filings
The meltdown of the financial system and housing industry along with the sub-sequent increase in joblessness between 2006 and 2008 led to a large number of people declaring personal bankruptcy. In 2008, according to the Deseret News, national bankruptcy filings increased 33 percent over 2007, which increased another 32 percent from 2008 to 2009.
In 2011, there was a 12 percent decrease in the amount of bank-ruptcies field to 1.4 million, according to the New York Times. There were also decreases seen in 2009 and 2010, when filings for Chapter 11 and 7 increased only 8 percent.
The good data is not really all that good whenever you consider the people are not declaring bankruptcies because they just cannot afford to, according to CNN.
Cash needed to file
Many people use their tax returns to file for bankruptcy now considering it is costly. It costs $1,500 at the very least to file Chapter 7 bankruptcy and that is a figure most people cannot afford. About 200,000 to 1 million people throughout the country cannot afford bankruptcy with those figured.
When that $1,500 is split up, $1,000 will go to the lawyer, more than likely. About $85 will be spent on pre-bankruptcy counseling and educa-tion courses that are legally required for those declaring bankruptcy and another $300 will be put towards the mandatory court fee for filing.
Get around the rules
Declaring bankruptcy is much more difficult now that the 2005 Bankruptcy Abuse Prevention and Consumer Protection Act have come out. This is why there are so many expenses and paperwork needed to file. That means that someone has to pay a lawyer even more cash to do all the paperwork. It makes it more difficult for the poor to declare bankruptcy, although the law was intended to keep people from filing for bankruptcy without cause.
There are some attorneys who do not need payment to do the case. There are many places you can go to find these attorneys. If a person's income is 150 percent or less of the federal poverty level, than a person can waive filing charges.
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