Going through a bankruptcy can be a stressful and time-consuming situation. We at The Weller Legal Group are here to help make the bankruptcy process easier and more efficient for you and your family. A common statement in the bankruptcy world is that, “the average millionaire will file for bankruptcy 3.5 times in their lifetime.” In this article, we are going to discuss this topic of how many times millionaires will file for bankruptcy in America?
Millionaire Facts
In this section we are going to briefly talk about some facts about millionaires in America according to factretriever.com. The first fact that we saw on this website is that 7% of all the households in America are considered millionaires. This may seem like a lot of millionaires in America and becoming a millionaire is not that far out of reach for the majority of Americans today. The second fact we wanted to share from this website is that the majority of millionaires are self-made. About 80% of millionaires made their money on their own while about 20% of millionaires inherited their millions of dollars. The third fact is that the average millionaire will file for bankruptcy an average of 3.5 times in their lifetimes. This is an interesting fact because the majority of people think that the rich and famous would never file for a bankruptcy. In the case of many millionaires they actually strategically file for bankruptcy and they usually come out ahead when everything is said and done.
Why?
The last fact in the section above may come as a shock to you. It might leave you scratching your head as to why someone who is worth millions of dollars would want to file for a bankruptcy. For the majority of these millionaires who file for bankruptcy it comes down to the restructuring of their debt. For those who file Chapter 7 Bankruptcy they may be able to get the majority of their unsecured debt discharged while selling off a portion of their assets. With Chapter 13 Bankruptcy, millionaires are also able to discharge some unsecured debts while being able to keep the majority of their assets. With Chapter 13 Bankruptcy, they will be required to make monthly payments to their creditors at hopefully a more manageable monthly payment and possibly even a lower interest rate. The majority of millionaires in America made their millions of dollars by starting their own business. There is also Chapter 11 Bankruptcy that is aimed towards helping debtors who own a business.
Bankruptcy to Increase Credit?
It is a common misconception that filing for a bankruptcy will decrease your credit score. In reality, for many of these millionaires that decide to file for a bankruptcy their credit score may actually start to improve dramatically after the bankruptcy process is finished. Making missed payments, repossessions, and lawsuits can be much more damaging to one’s credit score than filing for a bankruptcy. Many people who are facing financial hardships, even millionaires, may decide that going through the bankruptcy process is much better than dealing with the headaches of missed monthly payments each and every month.
Final Thoughts
We at The Weller Legal Group hope that the information provided to you in this article helped you understand that many millionaires will file for bankruptcy in their lifetimes. Going through a bankruptcy is not the end of the world and may even be a great start to a fresh new beginning. We at The Weller Legal Group have years of experience in helping our clients with bankruptcies and improving their credit scores. We have offices located throughout Florida, including, Clearwater, Port Richey, and Lakeland. If you have any other questions in regards to filing bankruptcies or working on improving your credit score feel free to give us a call today at 1-800-407-3328.
Picture Credit: jambulboy
