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The Right Bankruptcy Chapter

The Right Bankruptcy Chapter

The Right Bankruptcy Chapter

Every Waukegan bankruptcy attorney knows that filing the right chapter of bankruptcy the first time around is very important. A Waukegan bankruptcy attorney may be able to tell you about times when this did not happen and disaster ensued. For example, say a person files for a chapter 13 and they are unable to keep up with their end of the deal for whatever reason and they default on the payment schedule. This could result in another meeting with a Waukegan bankruptcy attorney and yet another bankruptcy filing. This means multiple filings for the same debt, which can significantly drive up the number of bankruptcy filings. Filing a chapter 13 first then following it up with a chapter 7 to skew the bankruptcy numbers in a given area and make one think that the bankruptcy count is higher than it actually is. This may not be intentional and sometimes it is completely unavoidable but other times the ending could very well have been predicted. For example, before locking yourself into a payment agreement, you should make sure that you are able to maintain that arrangement even in the face of unforeseen circumstances. You should have an emergency or rainy day fund just in case the unexpected should occur. That is a financially fatal flaw that usually leads to bankruptcy. Lots of times people do not plan for the unexpected to happen. They may have enough money coming in to maintain their lifestyle accordingly but as soon as a car breaks down or water heater stops working they often times find themselves in a financial rut. Then they become unable to keep up with their chapter 13 payments. This could possibly be avoided if filers try to build and maintain a comfortable savings account.
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