As an individual with financial concerns, it’s natural to consider the pros and cons of filing for bankruptcy. With both Chapter 7 and Chapter 13 an option, you could soon find that it’s the best way to stabilize your finances for a better future.
Here are some of the many financial concerns that could lead you to strongly consider bankruptcy:
- Credit card debt: You have every intention of getting your credit card debt under control, but it’s either spiraling out of control or too late. If you don’t have the means to pay down the balance, or even keep up with the minimum payment, bankruptcy may be your best option.
- Medical debt: This type of debt has the potential so sneak up on you when you least expect it. You never know when an injury or illness will result in extensive medical bills, which will quickly put your financial health in jeopardy. Worse yet, your current level of health may make it difficult to earn a living.
- Foreclosure notice: The last thing you want to find in your mailbox is a notice from your lender saying that they’re starting the foreclosure process. This is scary on many fronts, primarily because it means you could lose your home to the bank. When you file for bankruptcy, the automatic stay gives you some breathing room. Your mortgage lender, as well as other creditors, are not legally permitted to proceed with collection activity.
- Job loss: If you lose your job, you may not have enough money to pay your bills. And if that happens, it won’t be long before creditors are getting in touch. Rather than hide from them and hope to turn things around, a bankruptcy filing is the better option. The automatic stay will give you time to think, and the process itself allows you to discharge some or all of your debts.
If you’re currently dealing with any of these financial concerns or see them on the radar, it’s time to strongly consider the benefits of bankruptcy. This may be just what you need to feel better about your current situation and financial future.