You're thinking of declaring bankruptcy. You have been dealing with debt for longer than you can remember, and it just keeps getting worse.
Living under the crushing weight of debt is an emotionally (and even physically) draining experience. And the more the debt grows, the harder it gets to escape it. Filing for bankruptcy protection is one way that many people struggling with debt get their financial houses back in order.
Credit cards can cause debt problems when people do not use them responsibly. This is especially true because the high interest rates can massively increase debt when it is not paid off on time. So, should you consider getting a new credit card if you just filed for bankruptcy?
You got your first foreclosure notice. It's a position you never wanted to be in, but there's just not enough money to pay the bills right now with your current debt load.
Making the decision to file for bankruptcy, either as an individual or as a business, is never an easy decision to make. Although it is never the first choice out of the many options one has when first encountering financial difficulties, it can allow people and commercial entities to win back their freedom by successfully paying off their debts.
Chapter 7 bankruptcy is the type of bankruptcy that most debtors qualify for most easily, but it is not always the only option that a debtor has. Depending on several factors such as the nature of the debt and the income of the debtor, he or she may qualify for Chapter 11 or Chapter 13 bankruptcies, for instance.
Being in a financial situation where you need to file for bankruptcy can be stressful enough. Adding to this the worry that you may risk being fired for doing so will only add to this tension. The good news is that it is unlikely that you would ever be fired because of your decision to file for bankruptcy. However, before you do decide to file for bankruptcy, it is a good idea to be aware of the ways that your employer could use your decision against you, and other implications that filing might have.
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.