If you've lost your job, it can be hard to imagine how you're going to make ends meet. You know that there are ways to eliminate debt. However, without an income, you can't figure out how you'll make it work. Your mortgage, car payment and immediate needs come first. So what will you do about the other expenses you have?
If you are struggling with your finances, one of the things that you may want to consider is bankruptcy. Bankruptcy isn't always the best answer, but for many people who have struggled with debt and tried to get out of debt with negotiating tactics and by taking on more work, it is the final solution to their problems.
You've worked hard, and you've been with your employer for several years. You were shocked when your employer told you that they'd be shutting their doors. The business has always seemed busy, and it didn't make sense that the business would have to close.
Bankruptcy is usually discussed as if there is only a single option: Chapter 7 liquidation. If you've ever seen someone go through Chapter 7, you might be put off by the idea of needing it yourself. You don't always lose a lot in this form of bankruptcy, but there is a potential that you will have to give up some of your assets.
Bankruptcy is sometimes the right choice, especially when a person's income has no chance of catching up to their debts. Bankruptcy can help eliminate debt and get you back on your feet. In fact, it is relatively quick and painless once you start the process.
Chapter 7 bankruptcy, also called liquidation bankruptcy, is a kind of bankruptcy that allows you to get out of debt by eliminating your debts through legal action. To do this, you must be willing to give up certain items that are not exempt from liquidation. They are then sold, and the proceeds are used to repay creditors. Once the proceeds are used up, the remaining debts are forgiven.
Bankruptcy is an option that you have when you have so many debts that you cannot pay them back on time or with any certainty. Some people opt for bankruptcy to get a fresh start, while others turn to it with no other options.
If you realize Chapter 7 bankruptcy is the best way to improve your finances, it won't be long before you're learning more about the process and focusing on the next steps.
Chapter 13 bankruptcy, unlike Chapter 7, is not a liquidation bankruptcy. With this form of bankruptcy, you repay what you owe over a three-to-five-year timeframe.
As someone who has worked long and hard, it is difficult to keep going when you realize that nothing you have done has brought down the amount of debt you have. You work to pay your minimums, but living paycheck to paycheck isn't easy.