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.