Bankruptcy hits individuals, businesses as well as government entities

A job loss, overwhelming credit card debt, interest rate hikes for many of your financial obligations, medical bills, college cost, divorce and many other reasons lead people to declare bankruptcy. Lately, bankruptcy is not just limited to individuals and businesses. More and more cities are also looking at bankruptcy as a way to reduce or even eliminate their financial obligations. The City of Stockton in California and the City of Detroit in Michigan have already declared bankruptcy and are going through the process at this time. Many California cities including Compton, Fresno, Oakland and many others are reportedly looking into bankruptcy to reorganize their financial health.

For individuals with income and debt issues road to bankruptcy is clearly defined in many ways. Law provides the right to a new start. However, their income as well as debt needs to meet certain criteria in order to qualify for filing for bankruptcy. Individuals with serious financial difficulties should not be ashamed to seek bankruptcy protection when needed. However, they may elect to seek assistance from an expert in the field without going it alone. Understanding what the law provides is critical to successful completion of the process.