Because the average individual is not an expert on the legal nuances of bankruptcy, it’s understandable that most people use the internet as a guidebook for the process. While there are a few accurate sources of bankruptcy information online, there are also a lot of myths and general misinformation.
When it comes to correct and reliable information, nothing beats a professional opinion. Behm Law Group, Ltd. provides that expert opinion. If you’re considering filing for bankruptcy in Windom, MN, or the surrounding area, Behm Law Group, Ltd. can offer advice and more throughout the process.
You can find much about the basics of bankruptcy online, but the basics aren’t quite enough to file a successful case and see it through. Bankruptcy is an old practice, going back to ancient times, though it has evolved over time. Today, bankruptcy has many conditions that can change the course of a case, making it one of the most nuanced legal processes.
Because of this complexity, there are many unexpected things about bankruptcy, even as a nationwide occurrence. For example:
- About 1 in every 70 households file for bankruptcy each year. If you look at your community based on this information, it’s possible you may know someone who is working through bankruptcy.
- Almost 50% of households in the U.S. spend more than half their yearly income and have up to $15,000 in credit debt. This addition of credit debt to an already common pile of debts including student loans, mortgages, car loans, and more has led to a rapid increase in the number of consumer bankruptcies per year.
- The vast majority of people who file for bankruptcy relief don’t lose any property and only lose their debts. The bankruptcy exemptions that are available to you to protect your property are typically very generous. The bankruptcy exemptions you can use and the limitations of those bankruptcy exemptions vary from state to state. Generally, you must reside in a particular state for two (2) full years before filing a bankruptcy case in order to use or benefit from the bankruptcy exemptions of that state.
- The amount of average debt per bankruptcy case has increased over in the past 10 years. An American Bankruptcy Institute report released in 2009 showed that cases averaged $100,000 in debt for individual bankruptcies alone. Business bankruptcies had even greater debt averages per case. This shows there is a notable increase in the time households and businesses are barely making ends meet before filing for bankruptcy.
- Bankruptcy has increasingly affected those with a college education as tuitions rise. Each year, college tuitions increase to match the growing inflation our economy experiences. Student loans must be listed, like any other creditor, in the bankruptcy process but they are generally difficult to get discharged, except under specific circumstances. Student loan debts, in combination with the weight of others, still significantly contribute to bankruptcy filings, however.
To learn more about the process of filing for bankruptcy in Windom, MN, or to get started on your case, contact Behm Law Group, Ltd. at (507) 387-7200 today.