SOURCE: Oswalt Law Group

Oswalt Law Group

April 27, 2016 09:00 ET

Bankruptcies Are Down but Are Still a Good Option for Many, Advises Oswalt Law Group

PHOENIX, AZ--(Marketwired - April 27, 2016) -  According to economic forecasts, the number of people to file for individual bankruptcy in the U.S. is expected to decline for a fifth consecutive year. While that's definitely good news, The Oswalt Law Group, an Arizona-based law firm specializing in bankruptcies, offers a reminder that bankruptcy can be a wise move for people facing crushing debt and other difficult responsibilities.

"There's a common misperception that bankruptcy is only for irresponsible people, and that's simply not the case," said one Oswalt attorney. "Statistics tell us that more than 1.5 million people in the U.S. file for bankruptcy each year, and there are a host of reasons why, including loss of a job, unforeseen medical expenses, credit card debt, divorce and more."

Different Types of Bankruptcy

For individuals, there are two types of bankruptcy: Chapter 13 and Chapter 7.

Chapter 13 bankruptcy is reserved for those with an income sufficient to satisfy a structured repayment plan that will pay off debts within three-to-five years. One of the advantages of a Chapter 13 bankruptcy is that pending foreclosures can be stayed, and the Chapter 13 will allow the debtor to repay the mortgage arrears over the length of the plan.

In Chapter 7 bankruptcy, nonexempt assets are liquidated by the Trustee, and the proceeds are used repay a portion back to the debtor's creditors. A debtor can retain exempt assets.

Life After Bankruptcy

Another bankruptcy misconception is that it forever ruins an individual's financial life. While a bankruptcy will stay on your credit report from seven to ten years, re-establishing your credit is definitely achievable.

The keys to coming back from bankruptcy include:

  • Staying on top of your credit report and clear up any errors that appear on it
  • Stay diligent in paying your bills on time
  • Select a credit card -- preferably a secure card -- so that you can begin rebuilding your credit
  • Consult With a Bankruptcy Attorney

Again, bankruptcy can be an ideal solution for people in difficult financial situations. However, it should only be an option taken with the expertise of an attorney skilled in the bankruptcy process.

About Oswalt Law Group: The Oswalt Law Group in Phoenix has been providing professional representation for those seeking financial relief through bankruptcy. With offices in Phoenix, Peoria and Tempe, The Oswalt Group is available to help all Arizonans. Visit The Oswalt Group online at statewidebankruptcy.com or call (602) 225-2222 for a free consultation.

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