If you’re mired in debt, declaring bankruptcy is a tempting option. But not all temptations are worth the consequences. Here’s what you need to know before taking the leap.
Onerous living expenses a fiercely competitive business world the devastating recession and reliance on credit are all contributing factors to the rapid rise in the number of people who see bankruptcy as their best — or only — option.
In 1960 about 110000 Americans filed for bankruptcy. That number swelled to nearly 1.8 million by 2005.
Bankruptcy laws were designed to facilitate a “fresh start” by absolving or significantly reducing an insurmountable debt enabling a person to regain their financial footing.
The promise of a fresh start certainly appeals to those who see no light at the end of their financial tunnel but the rapid rise in filings also led to a series of reforms that have rendered bankruptcy a more complex process.
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