Bankruptcy in America is more common that you might think. California reports a 600 percent increase in bankruptcy filings in the last seven years. This year, more than 87,000 bankruptcy filings were logged in July alone, only about 10,000 less than the previous year’s July filings. And, in the first three months of 2012, more than 300,000 bankruptcy filings were logged. Most people face financial woes at one time or another in their life, but such high numbers of bankruptcy begs the question, why file bankruptcy? What are the advantages? Many people think that filing bankruptcy will clear their debt and rid them of their financial troubles. In most Chapter filings, this is actually not the case, and if anything, filing bankruptcy keeps the burden on the individual.
Most bankruptcy filings in