Many people see bankruptcy as a last resort, but in reality, going through bankruptcy can be a wise choice for those experiencing financial difficulties and desiring a fresh start. It can be an act of empowerment rather than something you are forced into. One reason why many people think that filing for bankruptcy is the last possible option is because they think that it will have a long-term negative effect on their credit. Whether or not this is the case can depends on the type bankruptcy you file.
Debt settlement services have become much more regulated over the last few years. They gained a bad reputation for charging excruciating amounts to help clients repay and settle their debts, but often they failed in their efforts. These days, debt settlement companies are of a much higher quality and provide a more reputable service to their clients.
Financial difficulties can be stressful, and if you are struggling to make your mortgage payments, losing your home may be a possibility. Having your home taken away due to a failure to make mortgage repayments is called foreclosure under the law.
You've made the decision to file for Chapter 7 bankruptcy. Perhaps you and your attorney have set the wheels in motion. A question that many people have is what they can continue to spend money on when they have a pending bankruptcy case without jeopardizing it. It may be tempting to make a few last luxury purchases, but don't do it.
People don't always get to the situation where they have to file for bankruptcy because of one large, unexpected bill. Sometimes it's a lot of bills that add up to the point where they're simply not able to pay them.
As we recently discussed, medical bills are one factor that can lead Americans to file for bankruptcy. This is something that many people don't realize. Most bankruptcy cases don't have anything to do with people being irresponsible with their money. Instead, circumstances, such as a job loss or an illness, lead to the need for debt relief.
Anyone who's had a visit to the hospital or an emergency room can testify that the cost can be shocking -- even if they have insurance. When people don't have adequate savings to cover these unexpected medical costs, the financial ramifications can be serious.