Facing dire financial hardships can leave you feeling as if you have no options. However, considering Chapter 7 bankruptcy could help you determine whether such action could allow you to work toward improving your situation. Though you may worry about how bankruptcy could affect your credit score, you may not want to let that worry act as a total deterrent.
Unfortunate circumstances can have a negative toll on various areas of life, including your finances. An emergency or unexpected expense can quickly impact your ability to meet your financial obligations, including your mortgage. After months of missed payments, you are hopelessly behind, overwhelmed, and you may be facing threats of foreclosure.
For people who are not able to pay all of their bills, bankruptcy can provide a way to get a fresh financial start. A large number of Americans have enrolled in higher education and the student loans they have had to take out in order to pay for their education can take up the vast majority of their income. This can be especially true once they have to begin making student loan payments. In situations like these, one might wonder if bankruptcy will provide relief from student loan debt as it would other forms of debts.
Some families who experience debt problems dip into retirement savings as a temporary solution. This can have high costs both now and later.
With medical costs getting higher and higher, and medical plans paying less and less, many people find themselves with more medical debt than they can pay.
Collection agencies often provide misleading information to consumers about bankruptcy and credit card debt. Many say that wage earners are not eligible for bankruptcy or cannot discharge credit card debt by filing bankruptcy.
Some people put off filing bankruptcy because they are afraid of losing everything they have. In reality, bankruptcy may be the best way of protecting assets from creditors.
There are many ways a person can fall behind on their rent. They may be dealing with medical bills, an injury that prevents them from working, or job loss. The further behind a person falls behind, the harder it can be to get caught up.
Some people say that bankruptcy should be the last resort for anyone dealing with serious debt problems. However, this is not always the case.
Some people with serious debt problems put off filing bankruptcy because they think they will lose their home. In reality, filing bankruptcy may be the best way to save your home if you have serious debt problems.