Healthcare is expensive, ridiculously expensive. Regardless of how much money you have saved or how solid your finances are, unexpected medical expenses can absolutely devastate your best-laid plans. This is particularly true when you are under-insured or if your health insurance denies coverage of a claim. All of a sudden, you can find yourself faced with tens of thousands of dollars in medical bills and hospitals harassing you for payment.
Trying to overcome debt problems is a hard, emotionally draining process. For many, it seems like a hopeless spiral of missed payments, juggling credit cards, selling treasured possessions, harassing calls from creditors, and growing interest penalties. If you find yourself in this situation, you need help. When attempts to pay off your debts and to negotiate with your creditors have failed, it is well past time to speak with an attorney for some relief.
Nobody wants to file bankruptcy. On either a personal or business basis, no one manages their finances or starts their own business with a vision of financial turmoil. Rather, we work hard, take risks, and do the best we can to provide for our families. Unfortunately, things happen along the way that can send us spiraling down a financial path we did not want to travel.
Filing for bankruptcy is a major step, and probably not something you ever wanted to do. You may have been in a major accident, or you or a family member may have experienced an extended illness that resulted in insurmountable medical bills. Budgets may have been cut at work, or you may have found yourself out of a job altogether. Often, there are other accompanying factors too, like divorce, overuse of credit card due to lack of income, and more.
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.
We have previously written about how important it is for a Debtor to be honest during the bankruptcy process. This was a particularly important lesson in a Chicago courtroom last month. Lynn Y. Zoiopoulos, an Illinois physician, was sentenced to 30 months in federal prison because she concealed assets in her Chapter 7 Bankruptcy.
The importance of honesty in the bankruptcy process cannot be overstated. As part of the bankruptcy process, a filer must disclose all property, income, and debts. These declarations are made under penalty of perjury that everything contained in the bankruptcy petition is true and correct to the best of one's knowledge, information, and belief. Honesty in this process is not optional; it is required. Failing to disclose income or assets can have wide-ranging implications from inability to discharge debt through to criminal liability.
For years, New Jersey homeowners saw their homes rise in value. During this time, many homeowners took out second or third mortgages or home equity loans. Even now, eight years after the beginning of the housing crisis, many homeowners are still underwater in their mortgages, owing more than their home is worth.