Alaska has the fortune of being a state that has a higher median income and a lower unemployment rate than many other states. The state also has one of the lowest bankruptcy rates per capita with approximately 988 cumulative filings in 2009.
The bankruptcy rates remained low in 2011 with cumulative total of 989 filings, according to CreditCard.com.
But there are people who will face overwhelming debt in any state and find that a Chapter 7 or Chapter 13 bankruptcy will help them shed their debt and stop the collection activities of their creditors.
While the federal government dictates bankruptcy law, every state has their differences and exemptions to the laws. Anyone considering bankruptcy in the state should meet with an Alaska bankruptcy attorney to help them navigate the system and determine which filling is in line with their needs.
The type of debt can determine whether your Alaska bankruptcy lawyer recommends Chapter 13, which is a type of reorganization or Chapter 7, liquidation of assets.
For 2011, Chapter 13 made up only 16 percent of total bankruptcies.
Chapter 7 filings comprised 84 percent of bankruptcies in the state. Under this structure an Alaska bankruptcy attorney is tasked with selling off most of an individual’s assets although there are a number of property, wage and settlement exemptions.
Before an Alaska resident makes their final decision to declare bankruptcy they should do careful research and speak with a Chapter 7 or Chapter 13 bankruptcy lawyer to see which will structure will give them debt relief.