Even though you don't dream of the day when you finally file for bankruptcy, it may be the best way to regain control of your finances. As you learn more about the process, you can decide if now is the best time to take action.
If you're facing financial trouble, it's important to consider all your options for seeking relief. Bankruptcy may not be the first thing you think about, but it could be the best way to improve your finances and provide a fresh start in the future.
You may never want to find yourself thinking about bankruptcy, but if you do, you shouldn't jump ahead until you consider the finer details of the process. It's the information you collect that will help you decide what to do next.
When some Americans hear that another person has filed for bankruptcy, they initially think that it has to do with that individual's inability to manage their finances. While this may be the reason that some individuals ultimately have to file, unexpected life changes most often result in bankruptcy filings.
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.
How stressed are people in Louisiana? Very, according to a recent report. And it appears financial stress is a major contributor to this.
There are many chapters of bankruptcy, which can lead to a lot of confusion about filing. For the sake of personal bankruptcy filings, there are really only two chapters that are common and relevant for most people: Chapter 7 bankruptcy and Chapter 13 bankruptcy. Most people will end up filing the former rather than the latter, and this is mostly due to the fact that these two chapters have different income requirements.
Imagine that you are in debt to the point that you are keenly aware that your creditors are calling you and mailing you. As a result, you avoid the phone when it rings and you plop your mail down on a table that conveniently stays out of your sight. For lack of a better phrase, you bury your head in the sand about your debt.
One of the commonly understood aspects about student debt is that it can't be discharged through bankruptcy -- unless there are extreme circumstances involved. As such, this form of debt becomes incredibly important to manage for those who have a student loan. But let's say despite your best efforts, you simply can't keep up with your student loans and the debt starts to overwhelm you. What are you supposed to do without the ability to discharge it through bankruptcy?
According to a report from an insolvency practice in Canada, there is a serious stigma that Canadians have with bankruptcy, to the point that most respondents were willing to do nearly anything instead of filing for bankruptcy. More than 2,000 Canadians were surveyed for this information, and many responded to the survey by saying they would rather work 10 hours of overtime per week for a year, or give up their cell phone for a year, or even sell their organs than seek professional help in the form of a bankruptcy.