With the recent recession that has affected many individuals throughout the U.S., bankruptcy has been a necessary option for many people. However, in the last year the number of bankruptcies filed has decreased tremendously. According to the Administrative Office of The United States Courts, bankruptcies have dropped over 20% in the past two years.
A reader asked an advice columnist how filing for bankruptcy but not actually going through with it will affect his ability to purchase a home. The answer may surprise some of our Birmingham readers. After the reader's company took a big hit financially, he and his spouse decided to file for Chapter 13 bankruptcy, but they decided they did not like the payment plan so the bankruptcy was never completed. Turns out he may have been better off had the bankruptcy been approved as the filing is still on his record.
Alabama readers who tuned into the 2012 Olympic Games this year are probably familiar with Gabby Douglas, America's 16-year-old gold medal winner in gymnastics. Others may be familiar with Gabby's mom, Natalie Hawkins, who has gained attention after her Chapter 13 bankruptcy filing became public. As many Americans root for Gabby Douglas, many will likely root for her mom, also. Her story is one that many others can relate to.
In a recent post we talked about the fact that Jefferson County has filed for bankruptcy after a tentative agreement with creditors fell through. A judge overseeing the case - which is the largest U.S. municipal bankruptcy ever-has delayed a decision to set a deadline for a workout plan.
Professional athletes can make a large amount of money in short amount of time. For various reasons, even though athletes can make a large amount of money, the money expenditures can outgrow the influx of money. When an Alabama individual's debt significantly outweighs their earnings or earning potential, bankruptcy may provide an option for bankruptcy relief. One form of debt relief is the liquidation process of Chapter 7 bankruptcy.