Many people do not have what it takes when it comes to personal finance, according to a recent study. This may explain why many people find themselves in over their head with financial situations and ultimately need to file for bankruptcy. A study of more than 1000 Americans older than age 30 found that less than half of the participants in the research project were able to explain what a 401(k) was. This found that many people also did not understand this concept of bankruptcy since 48% of respondents did not clearly understand the benefits provided under bankruptcy. Furthermore, only 30% of those who participated in the study said that their current budget and earnings allowed them to make an appropriate financial plan and only 13% of the 1000 individuals had a five-year plan for their finances.
Poor financial decisions can stack up over time and lead to critical consequences for someone who may be facing bankruptcy. In this situation, the financial concerns may be so severe that a fresh start is the only way for the party to move on with their life and get the right help. In these cases, a bankruptcy lawyer is necessary in order to determine whether you can or should file Chapter 7 bankruptcy or Chapter 13 bankruptcy.
Many people fall for myths and misunderstandings about bankruptcy that might prompt them to avoid getting the vital financial support provided by this fresh start program. Bankruptcy is often a choice for those people who have significant amounts of debt who feel that this will be their only opportunity to start over. Chapter 7 or chapter 13 bankruptcy can provide a way out and a powerful financial plan for the future for those individuals who have been seriously struggling with financial issues for many years. If you or someone you know is in this situation, you deserve to speak with an experienced bankruptcy attorney as soon as possible. The right lawyer is critical for filing bankruptcy information in a timely fashion and your decision to consult with the right bankruptcy lawyer can make the process of initiating your petition paperwork and ensuring all of the details are correct much easier.