Bankruptcy is an important process for consumers and businesses. The bankruptcy process is a way to resolve debt problems, and it frequently provides new opportunities. Whether you are in consumer debt or business debt, filing for bankruptcy can be the major step to take to offer you a fresh financial start.
According to recent data, nationally, bankruptcy filings rose significantly in March. The increase from February amounts to 40 percent or up to 81,590 total filings from 58,000 total filings in February. The number of bankruptcies in March also increased from 78,372 total filings in March of last year. Tennessee was again ranked number two in the nation with 5.74 bankruptcies per 10,000, which were also up slightly from last year. A total of 62 percent of filings were Chapter 7 bankruptcies, while 59 percent of bankruptcies filed in February were Chapter 7 bankruptcies.
Business bankruptcy filings also increased. The total number of business bankruptcy filings in March was 3,658. The number of business bankruptcies from March was an increase from February, as well as an increase from the total number of business bankruptcies filed last March. Both business and personal bankruptcy options provide help for struggling businesses and individuals in different situations.
Chapter 7 bankruptcy is a liquidation bankruptcy option that individuals and businesses with overwhelming debt, can consider. For individuals, the Chapter 7 bankruptcy allows the filing party to liquidate non-exempt assets to repay creditors and enjoy the fresh financial start many individuals struggling with the stress and strain of debt seek. This option may also be available to businesses. There are requirements to qualify for Chapter 7 bankruptcy, but those who do not qualify may have other bankruptcy options to consider.
Bankruptcy is a personalized process, and the legal system provides a variety of options to help those struggling with debt to achieve their goals for the process and enjoy debt relief. Being familiar with the options as they relate to individual situations and circumstances can be helpful for any party considering bankruptcy as an option to help with concerns related to debt.
Source: DSNews.com, “National Bankruptcies Nearly Doubled in March,” April 6, 2017