What to do before, during and after filing bankruptcy?
By The Exchange Team
Personal bankruptcy filings have fallen since the coronavirus pandemic, but rising interest rates will likely increase them this year.
, a New York bankruptcy lawyer, has received more calls in recent weeks than in the previous 6 months.
, head of Chicago's Lakelaw, said bankruptcy filings have risen 25% in the last two months.
The bankruptcy process involves many steps. Your circumstances will determine which bankruptcy you file.
Chapter 7 bankruptcy discharges most, but not all, personal debts. Petitioners may have alimony, tax debts, and student loans.
Chapter 7 requires a means test. Your income must be below the state's median. Chapter 13 is required otherwise.
Some unsecured debts may be forgiven and you may be able to keep some property, but it creates a five-year debt repayment plan.