Handling debt is hard enough, but it can be almost impossible when one sees debts piling up on top of each other with no relief in sight. When a person or business finds it is impossible to keep up with debts, it may be time to consider declaring bankruptcy.
Debt can hang around our necks like a stone, but it is always surmountable. Mild debt problems can often be solved with restructuring, and bankruptcy -- never an enjoyable prospect -- can actually help people return to financial health from under the pressure of creditors.
No one wants to think about the possibility of bankruptcy. The choice seems difficult at any time, so it is important to understand all the possible options for recovering from debt when it seems like they are limited.
Your wages are three-quarters what they were. You can't stand to look at your phone because creditors won't stop calling. You can't dream of owning or keeping a house as your credit score plummets every month.
Debt is a major problem for many Americans. Figures have been steadily rising to around $2.4 trillion currently owed by individuals. Only a third of this staggering amount is revolving debt, such as credit card debt, while the remainder is in loans for cars, houses and education.
Debt is a major problem in the United States, with millions of people owing trillions of dollars to debt collectors, credit card issuers and other consumer creditors. It is tempting to ignore debt-related problems when they seem unmanageable, but this inevitably makes the problem worse.
Your child wanted to buy a car and couldn't get approved alone. You decided to co-sign, saying you'd share the car. The total payment was $500 per month, and you both paid $250 of that. If your child then goes bankrupt, do you still have to pay for the debt, or is it all cleared since it was the same auto loan?
So you're looking into debt relief methods, such as bankruptcy. Not only do you want to get rid of the debt you have, but you want to take this time to really commit yourself to staying out of debt in the future. Some ways to do this include:
The phone rings, and you don't have the number saved. You pick it up anyway, even though you think it's a telemarketer, but you're surprised to find out they're not trying to sell you anything. They do want your money, though. The person claims to be with a collections agency, trying to collect on what you owe.
Getting out of debt sounds simple: Spend less money and pay off what you owe. Unfortunately, it's not always that simple, especially when dealing with significant levels of debt -- like medical debt that you may never earn enough to pay off. For more common, everyday debt, these are a few reasons people may not be able to shake it: