Many people who are interested in bankruptcy immediately turn their attention to Chapter 7, as they feel this is the best way to improve their situation.
If you live in Medina and have found yourself with unmanageable debate, you are not alone. Many people have found themselves struggling to keep up with mortgage payments, credit payments and even monthly utility bills. Another common debt that many people face is back taxes. Whether you did not have enough withholding taken from your paychecks or you had an unexpected source of taxable income, the Internal Revenue Service (IRS) wants their cut.
If you have found yourself drowning in debt, you are not alone. Other people in Medina have found themselves in similar circumstances. For some, a few sessions of credit counseling might provide the solution they need. For others, they need something a bit more intensive. While bankruptcy often carries a strong negative stigma, you should think of it more as a debt relief tool. But, is bankruptcy the right choice for you?
You've fallen behind in your bills. Maybe you had to keep using credit cards for living expenses, and now you've maxed out your credit and still can't afford basic necessities. Perhaps you experienced a car accident or sudden medical event that left you unable to work and with a pile of medical bills. It only takes a few days or weeks for the average American household to fall desperately behind on paying bills. Many times, lines of credit, credit card and old debts are the first thing you stop paying when times are financially tough.
When you discover that your debt is overwhelming, you may want to curl into a ball and pretend it will all go away. Unfortunately, it won't. Once you realize that you are in over your head, you have to make the decision to make a change. In some cases, that time only comes when you get served notice of a pending lawsuit from a creditor or a pre-foreclosure letter from your mortgage lender.
If you have found yourself overwhelmed with debt, you are not alone. On average, more than a million people across the country have filed for bankruptcy during the prior year. You may even know a neighbor or friend in Medina that has either already filed or is considering filing for bankruptcy.
You have a lot of different debts, and you're tired of it. You're 40 years old, and you want a fresh start. You decide that bankruptcy is the way to go. You've learned a lot about your finances over the years, after all, and you're confident that you can make better choices moving forward. You just want to eliminate all of your debt and start again with this new knowledge and this new focus.
The biggest fear associated with Chapter 7 bankruptcy comes largely from Hollywood movies where you see the arc of a famous person's life. Suddenly, the person becomes famous and wealthy too fast. Spending gets out of control, and the next thing you know the sports star, rocker or movie star has to file for bankruptcy.
You filed bankruptcy right when you wanted to buy your first home. Now you're worried that you'll never get approved for a mortgage and get that dream house -- or even a starter home.