Suffering financially is often categorized as just another feature of being an adult. While virtually no one wants to have to stretch their money from paycheck to paycheck, adults in Florida are often fed the message that their struggle is not uncommon, and therefore they are doing all right. According to experts, this is not the reality that people should be living with. Instead, millions of people in America could benefit from pursuing Chapter 7 bankruptcy.
Fewer than 500,000 people filed for Chapter 7 bankruptcy in 2017. According to one expert, this is a vast underuse of an important resource for Americans, particularly those who fall into the low-income category. Some even liken it to a tool for fighting poverty, as a fresh financial start can help individuals improve their credit scores and even potentially obtain better jobs.
A professor of economics from the University of California who studies bankruptcy also expressed her initial surprise when she learned of the low filing rate. For some, the initial cost of filing is a deterrent. She further demonstrates by pointing out that bankruptcy filings actually increase around the time of year when people receive their tax refunds.
Some people in Florida may feel deterred by the means test that they must pass before successfully pursuing Chapter 7 bankruptcy. However, experts agree that many people who could benefit from this process could also readily pass the means test. With debt discharged and a brighter future in sight, most individuals who file for Chapter 7 can secure a better financial foundation for themselves.