Throughout American history, innovation, the will to succeed and the willingness to take risks has defined entrepreneurs. These are the individuals who built our country and our economy. Every business has a story to tell, and all too many of those stories involve being bested by the innumerable challenges and uncertainties that business owners face on a daily basis. And so, knowing how to deal with an unsuccessful venture is just as important as knowing how to manage the growth of a successful one.
Relatively new legislation has framed bankruptcy to limit the amount of Chapter 7 bankruptcy filings. This is controlled by restricting Chapter 7 bankruptcy to only people that fall under the median state income, when adjusted for inflation and family size. Individuals above the median household income can only file for Chapter 13 bankruptcy. The new laws further changed Chapter 13’s duration to a compulsory 3-5 year period.