The past couple of years had an epidemic rise in bank-ruptcy filings countrywide. The pace has slowed considerably. However, a large number of people cannot even afford the cost of filing for bank-ruptcy.
Not as many bankruptcy filings
The meltdown of the financial system and housing industry along with the sub-sequent boost in unemployment between 2006 and 2008 led to a lot of individuals filing for 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.
The increasing rate slowed quite a bit from 2009 to 2010 with only an 8 percent increase. There were 1.55 million filings for Chapter 11 and 7 bankruptcies during that year. In 2011, there were only 1.4 million filings, a 12 percent decrease, according to the New York Times.
The declining number of bankruptcies is encouraging. However, the counterpart to the data is, accord-ing to CNN, which a lot more individuals would file for bankruptcy if they could pay for it.
Not enough money to file for bankruptcy
Lots of people use their tax returns to file for bankruptcy now considering it is expensive. It costs $1,500 at the very least to file Chapter 7 bankruptcy and that is a figure a lot of people cannot afford. About 200,000 to 1 million people throughout the nation cannot pay for bankruptcy with those figured.
The $1,500 will mostly go to the attorney. The fee from the lawyer will add up to around $1,000 after considering the mandatory $300 federal court fee for filing. It also includes that many people will have to pay an average of $85 to pay for debtor's education courses and pre-bankruptcy counseling. This is required for everyone who is filing for bankruptcy.
Does not have to be so expen-sive
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 expenditures 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 individuals from filing for bankruptcy without trigger.
An individual can waive filing charges in some cases if their income is 150 percent or less of the federal poverty level. You may also be able to find lawyers that are willing to work without pay. There are some lawyers out there who are willing to do so.
Not as many bankruptcy filings
The meltdown of the financial system and housing industry along with the sub-sequent boost in unemployment between 2006 and 2008 led to a lot of individuals filing for 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.
The increasing rate slowed quite a bit from 2009 to 2010 with only an 8 percent increase. There were 1.55 million filings for Chapter 11 and 7 bankruptcies during that year. In 2011, there were only 1.4 million filings, a 12 percent decrease, according to the New York Times.
The declining number of bankruptcies is encouraging. However, the counterpart to the data is, accord-ing to CNN, which a lot more individuals would file for bankruptcy if they could pay for it.
Not enough money to file for bankruptcy
Lots of people use their tax returns to file for bankruptcy now considering it is expensive. It costs $1,500 at the very least to file Chapter 7 bankruptcy and that is a figure a lot of people cannot afford. About 200,000 to 1 million people throughout the nation cannot pay for bankruptcy with those figured.
The $1,500 will mostly go to the attorney. The fee from the lawyer will add up to around $1,000 after considering the mandatory $300 federal court fee for filing. It also includes that many people will have to pay an average of $85 to pay for debtor's education courses and pre-bankruptcy counseling. This is required for everyone who is filing for bankruptcy.
Does not have to be so expen-sive
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 expenditures 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 individuals from filing for bankruptcy without trigger.
An individual can waive filing charges in some cases if their income is 150 percent or less of the federal poverty level. You may also be able to find lawyers that are willing to work without pay. There are some lawyers out there who are willing to do so.
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