There are many many people these days who are having a hard time paying their bills. Because of the economy we live in now, people are loosing their jobs, having their hours cut and many are loosing their benefits. These are drastic measures and they all do one thing, make life difficult. If you have been able to keep your job, good for you, but there are thousands of people who are out of work, unable to make ends meet and for them, bankruptcy might be their only option.
These people are the ones who are likely deep in debt and although they have worked with a debt counselor, they still find their payments impossible to keep up with. After all their hard work and still they are buried in debt, it can be the bankruptcy laws that will save them. This is for those who cannot pay their creditors and they are in need of a fresh start. They can either create a suitable repayments plan or liquidate their assets to pay off their debts. There are three main chapters to bankruptcy and it is the Federal courts who have jurisdiction of these cases.
These people have tried everything by the time they reach this point. They might have borrow from friend to be able to pay their utility bill or maybe they have borrowed from a family member so they could cover their mortgage. They might even have applied for multiple payday loans at www.payday-loans.co.uk when they were broke because this loan gave them a cash advance. In the end, it can be bankruptcy for many people as their last resort. Bankruptcy is different depending on where you life. In the UK for instance, bankruptcy is limited of individuals where as insolvency proceedings such as liquidation and administration are for companies. In the US, bankruptcy is a more broad term to formal insolvency proceedings. Each person considering bankruptcy must speak with a legal professional who can explain the different chapters and answer all their questions so they know for sure that filing is their only option left.