If you've been dealing with reduced income, expanding debt or collection calls, you're probably feeling quite stressed out. You may know that Chapter 7 bankruptcy offers relief for those with debt-related financial issues, but you may think it couldn't possibly work for you. People often think that bankruptcy is too difficult or that it requires that you give up everything you own.
If you're considering filing for personal bankruptcy, it is important to do your homework on the process before moving forward. Planning properly for bankruptcy is one of the most important portions of the process, but many individuals who choose to use bankruptcy for debt relief fail to take full advantage of the process because of poor planning.
The first of the month is right around on the corner and rent is due. You barely have enough cash to pay your landlord and still go pick up groceries for the week. But, you have a credit card. It won't hurt to use it this one time to buy food to get you through to your next paycheck. Unfortunately, past due notices are already stacking up from the other credit card you maxed out three months ago, in addition to the ones for your car loan. With constant calls from creditors and the threat of repossession, you may be wondering what to do.
Overwhelming debt is a common problem not limited solely to the Memphis area. People across the country are underwater due to trying to make ends meet. The combination of low wages and continuously increasing living expenses is generally responsible for the mounting debt problem.
The term "bankruptcy" is often used broadly to refer to government assisted discharge of debt, but the law actually offers a few options for the consumer to consider. Most commonly, individuals who pursue bankruptcy choose either a Chapter 7 liquidation or a Chapter 13 repayment plan.
During the last six years, fewer Americans have filed for personal bankruptcy. In fact, according to research by Consumer Reports, bankruptcies have declined by 50 percent. According to Consumer Reports, this decrease is partially the result of the Affordable Care Act, which makes healthcare easier and more affordable for Americans to get.
If you have reason to believe that Chapter 7 bankruptcy is the best way to escape financial trouble, you owe it to yourself to learn more about the process.