Bankruptcy can be intimidating. It sounds like a daunting process, and sometimes it is. But for many people, for one reason or another, excessive debt and the inability to pay it back is a crushing reality. In these circumstances, bankruptcy may be a good option for you. There are several choices you have, including deciding between chapter 7 and chapter 13 bankruptcy. This post will help you determine if you might be a good candidate for bankruptcy.
STRUGGLING TO PAY BILLS
There are many reasons why you might struggle to keep up with your bills. Maybe you lost your job, got divorced or other extenuating circumstances impacted your ability to keep a stable income. Perhaps you had an unexpected medical condition that surprised you with large bills. If you face a seemingly insurmountable amount of debt and want relief from the endless debt collector calls and letters, you could be a candidate for bankruptcy. Don’t wait until your financial situation hits rock bottom before getting help. There are choices available to you even if things seem impossible right now!
Do you own a home? If so, you are well aware that your home is one of your most valuable possessions, both emotionally and financially. Credit counseling can only go so far when it comes to helping you keep your home or car. Bankruptcy gives you the opportunity to keep your home while relieving the stress of foreclosure. Foreclosure is the process in which the lender seeks to take back the property if a loan is in default. When you face foreclosure, bankruptcy is a unique option. Instead of simply appeasing some creditors for a specified amount of time, bankruptcy can give you the chance to have your debt erased without losing your home. The same is true for any other assets as well. If you own a home, car, or other assets but also face mounting credit card bills, bankruptcy could be beneficial for you.
POOR MENTAL HEALTH
The impact and stress of being unable to keep up with your bills or potentially lose your home cannot be emphasized enough. There are real connections between financial stress and other mental health conditions like depression and anxiety. Finances affect every area of your life. If you find that your current financial situation directly affects your mental health in a negative way, it’s time to look into bankruptcy as a practical solution. While bankruptcy is certainly not a solution for all mental health issues, it can make a positive difference in your life when stress and anxiety are tied to financial concerns.
Have more questions about bankruptcy? Wondering whether you might be a good candidate? Call or email David Brunelle with your bankruptcy questions, or to learn more about the legal bankruptcy process in general.