U.S. bankruptcies are on the rise nationwide. In fact, U.S. consumer bankruptcies could top 1.6 million this year. The most common reasons for filing personal bankruptcy are bad mortgage debt, credit card debt, medical bills and divorce.
All these bankruptcy filings are affecting not just the people filing bankruptcy, but also their creditors.
While most people who declare bankruptcy do so as an absolute last resort, sometimes the debtor has regular income or valuable assets that could be used to pay off a portion of the debts.
If you are owed money by someone who declared bankruptcy recently, it does not mean you have no chance of recovering on the debt. You still have options for pursuing money owed to you.
Here are the steps you should follow if you are a creditor and someone who owes you money has declared bankruptcy. Read the rest of this entry »