While many debtors find Chapter 7 bankruptcy to be an attractive choice for filing due to the discharge available in three to six months, if they cannot pass the Means test, they must file for Chapter 13 instead. Known as the income-based bankruptcy, Chapter 13 offers many different benefits to the filer; for instance, if your home is under threat of foreclosure, it will be stopped immediately with the automatic stay, an injunction which prohibits creditors from pursuing any collections activity throughout the duration of the bankruptcy. If you are behind on payments, they can also be included in the repayment plan, allowing you to catch up-if you are also making your normal monthly.
There is often a lot of emotion attached to how and when we spend money. For instance, we spend when we are happy, we indulge in retail therapy when we are bored or sad, and we may even feel depressed when we cannot pay the bills. While mismanagement of money is sometimes the reason for our financial downfall, more often it is due to an unexpected life event like a major illness, car accident, loss of job, or even divorce.
If you are considering bankruptcy or have just filed, you are probably looking forward to exiting a dark time. Financial problems can happen to anyone-but no matter the level of accomplishment or income you may have achieved, people often feel embarrassed when they file Chapter 7 or Chapter 13 bankruptcy. Hundreds of thousands of people file bankruptcies every year in the United States, often doing so after years of struggling to keep up with the ever-increasing cost of living. And as you may have experienced, mild financial problems escalate quickly when an unexpected (and expensive) event occurs like the loss of a job, illness, divorce, and more.
You can probably relate to the ups and downs of trying to get by financially today. Millions of others around the US are feeling the stress of balancing the household budget also, especially as the cost of living continues to rise while wage increases for many either are insufficient or are completely nonexistent. The way we feel when we have a positive grip on our finances can be hard to describe-but the reverse can often be defined as disturbing, anxiety-inducing, and downright nightmarish. Much of this stems from feeling helpless-and you very well may be somewhat helpless to pay numerous bills, especially if you have been hit hard by a medical issue, unemployment, divorce, overwhelming student loan debt and more.
As most will attest, marriage and money can be a complex combination. When you got married, you and your spouse likely merged finances with a positive outlook, looking forward to all the benefits of a strong partnership. As the years pass though, there are inevitable challenges which must be weathered together-and finances are often connected to them in one way or another.
Like millions of others before you in the US, you may have decided to file bankruptcy due to an overwhelming amount of debt. You probably never expected to be in such a position, but life is full of surprises and unfortunately, they are not always good when it comes to finances. If you have been struggling with a torrent of medical bills after a car accident, the loss of your job, a difficult divorce, or maybe even all these events in the past few years, filing for bankruptcy may be the best solution.
The goal behind filing for bankruptcy is to pave a new financial path for yourself, free of debt. The stories behind bankruptcy vary, however, and are often the result of unexpected, even catastrophic events. And just because something happens once, unfortunately, does not mean it can't happen again.
Most people who file for bankruptcy have been struck by an unexpected event that caused severe financial challenge. Illness or injury and medical bills may have eaten right through all your savings and extra income, or unemployment may have stopped you in your tracks. Whatever the case, bankruptcy can act as a powerful financial tool for getting back on track-especially with the help of an experienced attorney from a law firm like Levitt & Slafkes, PC.
Are you overwhelmed with debt, having reached the point where you can barely pay for the essentials, much less satisfy pay your creditors? You may have been doing your best to cope with escalating financial distress for months now or even years, but have finally decided to explore bankruptcy as an option. While this may be the smartest solution for gaining firm control of your finances, it can also be a difficult decision to make.