It doesn't take long to get in over your head financially. If you carry a balance on your credit cards, finance your vehicles and have a mortgage, those payments likely consume a significant portion of your pay every month. Getting into a car accident, suddenly falling ill or losing your job could mean going from making ends meet to drowning in debt.
Celebrities are not immune from falling behind on paying their debts. One of the most recent examples involves Lil' Kim, who has accumulated over $1.47 million in back taxes.
If you find yourself drowning in credit-card debt and searching for a solution, the best thing you can do is start at square one. For most, this means learning more about credit-card debt and understanding the steps you can take to make progress in paying it down.
No one dreams of the day when they will file for Chapter 7 bankruptcy, as this means something has gone wrong in regards to your finances.
Like just about any legal proceeding, filing for bankruptcy requires that you have exhaustive documentation. For example, when you first meet with an attorney, ideally you will bring paperwork such as proof of income (workers' compensation, pay stubs, unemployment payments and the like), any notices about foreclosure and wage garnishment, bank statements, debt statements from each creditor and paperwork if any creditors are suing you.
Having credit card debt is very common here in the United States. How much such debt do people here in Louisiana tend to carry? Less than individuals from many other parts of the country, according to recent figures discussed in a Forbes article.
How stressed are people in Louisiana? Very, according to a recent report. And it appears financial stress is a major contributor to this.
You hope that your finances will always remain in good standing, but there could come a time when you have no choice but to think long and hard about Chapter 7 bankruptcy.
If you come to find yourself drowning in credit-card debt, it's safe to assume you'll quickly search for a way out.