Fewer individuals are declaring bankrupt-cy, which is a good sign after the epidemic rise in the last couple of years. However, the high cost of even declaring bankruptcy makes it too expensive to a lot of people.
Fewer filing for bankruptcy
The meltdown of the financial system and housing industry along with the following rise in unemployment between 2006 and 2008 led to a lot of people declaring personal bankruptcy. In 2008, according to the Deseret News, national bankruptcy filings increased 33 percent over 2007, which increased another 32 percent from 2008 to 2009.
The increasing rate slowed quite a bit from 2009 to 2010 with only an 8 percent increase. There were 1.55 million filings for Chapter 11 and 7 bankruptcies during that year. In 2011, there were only 1.4 million filings, a 12 percent decrease, according to the New York Times.
The optimistic data is not really all that optimistic when you consider the individuals are not filing for bankruptcies because they just cannot afford to, according to CNN.
Not enough money to file for bankruptcy
Lots of people use their tax returns to file for bankruptcy now considering it is costly. It costs $1,500 at the very least to file Chapter 7 bankruptcy and that is a figure most people cannot afford. About 200,000 to 1 million people throughout the nation cannot afford bankruptcy with those figured.
The $1,500 will mostly go to the attorney. The fee from the lawyer will add up to around $1,000 after considering the mandatory $300 federal court fee for filing. It also consists of that a lot of people will have to pay an average of $85 to cover debtor's education courses and pre-bankruptcy counseling. This is required for anybody who is filing for bankruptcy.
Does not have to be so expen-sive
Part of the expense involved is incurred by additional hoops to jump through and paperwork mandat-ed by the 2005 Bankruptcy Abuse Prevention and Consumer Protection Act, which has made filing for bankruptcy more difficult to do. Inexorably, that involves more legal work and thus more in legal charges. The law was passed to be able to reduce un-necessary or frivolous filings, but critics have contended the law puts bankruptcy further out of reach for the poor.
However, some attorneys are willing to work pro bono, or without getting paid. There are pro bono associations through which one can find an attorney who might be willing to take a case. Some judges will also waive filing charges if a person's income is 150 per-cent or less of the federal poverty level.
Fewer filing for bankruptcy
The meltdown of the financial system and housing industry along with the following rise in unemployment between 2006 and 2008 led to a lot of people declaring personal bankruptcy. In 2008, according to the Deseret News, national bankruptcy filings increased 33 percent over 2007, which increased another 32 percent from 2008 to 2009.
The increasing rate slowed quite a bit from 2009 to 2010 with only an 8 percent increase. There were 1.55 million filings for Chapter 11 and 7 bankruptcies during that year. In 2011, there were only 1.4 million filings, a 12 percent decrease, according to the New York Times.
The optimistic data is not really all that optimistic when you consider the individuals are not filing for bankruptcies because they just cannot afford to, according to CNN.
Not enough money to file for bankruptcy
Lots of people use their tax returns to file for bankruptcy now considering it is costly. It costs $1,500 at the very least to file Chapter 7 bankruptcy and that is a figure most people cannot afford. About 200,000 to 1 million people throughout the nation cannot afford bankruptcy with those figured.
The $1,500 will mostly go to the attorney. The fee from the lawyer will add up to around $1,000 after considering the mandatory $300 federal court fee for filing. It also consists of that a lot of people will have to pay an average of $85 to cover debtor's education courses and pre-bankruptcy counseling. This is required for anybody who is filing for bankruptcy.
Does not have to be so expen-sive
Part of the expense involved is incurred by additional hoops to jump through and paperwork mandat-ed by the 2005 Bankruptcy Abuse Prevention and Consumer Protection Act, which has made filing for bankruptcy more difficult to do. Inexorably, that involves more legal work and thus more in legal charges. The law was passed to be able to reduce un-necessary or frivolous filings, but critics have contended the law puts bankruptcy further out of reach for the poor.
However, some attorneys are willing to work pro bono, or without getting paid. There are pro bono associations through which one can find an attorney who might be willing to take a case. Some judges will also waive filing charges if a person's income is 150 per-cent or less of the federal poverty level.
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