Financial hardship is no joke. Individuals facing financial difficulties experience a level of stress that is unparalleled. Depending upon an individual’s circumstances, a good option for debt reduction is to file for bankruptcy. According to a recent New Jersey survey, a total of one in eight Americans have considered filing for bankruptcy at one time or another.
The survey revealed that 13 percent of all citizens of the United States have faced financial hardship. Of those numbers, 1. 5 million filed for bankruptcy in 2010. However, not everyone is approved by bankruptcy courts when a request is submitted for the litigation process.
Statistically, paperwork mistakes mark the number one reason a bankruptcy court will decline a request. Second to paperwork, many people file for the wrong type of bankruptcy. for example, the qualifiers for Chapter 7 and Chapter 13 differ. In fact, there is a certain set of parameters one must meet before becoming eligible for Chapter 7. However, failing to qualify for a Chapter 7 bankruptcy does not necessarily mean other types of bankruptcy are ruled out, even given the same set of financial circumstances.
The numbers for New Jersey, and the remainder of the US, are a stark reminder of the economic strains of recession. The good news for New Jersey residents is that filing for bankruptcy can be a positive experience. Individuals and couples who choose the option of Chapter 7 or Chapter 13 may find that a second opinion on any application can help minimize errors that may prevent a bankruptcy from being approved.
Source: Walletpop, Bankruptcy Blunders: Top Reasons Your Bankruptcy Filing May Be Rejected, Associated Press, 14 Jun, 2011