When credit card and medical bills start piling up, and it feels as though there is no way out, it may be a good time to start considering filing for bankruptcy protection as a way to take back control of finances.
This is what one mayor recently decided to do. On top of mounting credit card debt, and medical bills accrued from his wife's fight against pancreatic cancer, the man decided that filing for bankruptcy protection was the best debt relief option for his situation.
According to sources, the now-widow makes just $34,000 a year as his job as a working mayor. And while he does have another job as a real estate broker, with a drop in the real estate market, the mayor only finds himself making an additional $6,000 a year from his second job.
This combined $40,000 a year is just not enough for him to keep up on the $77,000 in credit card debt, and the two mortgages he's taken out on his home, which totals about $371,000.
And while this man is the mayor of an Arizona community, many people in Florida are finding themselves in the exact same situation. When a loved one gets sick and needs costly treatments, often times the only answer is to put the medical bills on credit cards, which can only increase the debt through high interest rates if the person can only afford the minimum monthly payments.
In addition, many of those who worked in the real estate market over the past few years have felt the pinch as more people lost their homes to foreclosure and home values sharply decrease.
By filing for bankruptcy protection this mayor can finally dig himself out of the financial hole he's been living in, and start rebuilding his credit for the future.
Source: KSWT News, "Arizona mayor files for bankruptcy," 23 Jan 2011