There are a few different reasons to file for Chapter 13. Probably the first one is if you are not qualifying for the Chapter 7.
Jan. 12, 2023
Filing for Bankruptcy Helped People Get Back on Their Feet After the Great Recession
John from North Carolina shared a story about his uncle, a furniture-store owner, who filed for bankruptcy in order to regain financial stability.
The Great Recession resulted in many people across the United States being laid off from their jobs or losing the businesses that they had dedicated their lives to running. In an article featured on USA Bankruptcy Guide, an online resource for people who are considering filing for bankruptcy, John from North Carolina shared a story about his uncle, a furniture store owner, who filed for bankruptcy in order to regain financial stability.
After realizing that he couldn't compete with larger competitors or afford to keep his employees on the payroll once the recession hit, John's uncle tapped into his savings and retirement accounts in an attempt to keep his furniture store up and running. Ultimately, he filed for bankruptcy and put his business on the auction block when he couldn't get any buyers.
Fortunately, John's uncle was able to keep his home, provided he continued to make his monthly payments, and found a job in marketing that he wound up really enjoying.
“My uncle is an honorable man, and wanted to wrap things up properly,” wrote John. “He hired a lawyer to help him through the legal paperwork and realized that there was no shame in filing bankruptcy. He had managed his business as best as he could and just got caught up in the recession, like everyone else.”
If you've fallen behind on your bills and are struggling to regain financial stability, you should reach out to a Minneapolis, Carver or Anoka County bankruptcy lawyer for consultation. At the Atlas Law Firm, we view bankruptcy as a financial tool that can help people resolve burdensome debt so they can get back on their feet, and our experienced professionals can help you through the process from start to finish.
The three common triggers for bankruptcy are unemployment, medical expenses, and divorce. Unemployment can trigger bankruptcy, which is pretty straightforward.
The trustee has a duty to conduct due diligence, and that basically means reviewing the documents that are filed by the debtor and then holding a hearing called a Section 341 hearing in which the trustee asks some standard questions of the debtor.