Month: April 2023

70% of American are feeling Financial Stress. Chapter 7 or 13 Bankruptcy can help.

in Bankruptcy, Credit and Credit Cards

Financial Stress

According to a new CNBC survey, 70% of Americans are feeling financially stressed. This is not surprising given the economic challenges that many people have been facing in recent years. However, there are ways to address financial stress, and one of those ways is through bankruptcy.

Bankruptcy is often seen as a last resort for people who are struggling with debt. However, it can actually be a powerful tool for reducing financial stress and starting fresh. Bankruptcy can help people in several ways:

  1. It can stop creditor harassment: When people fall behind on their bills, they often receive calls and letters from creditors demanding payment. This can be a source of constant stress and anxiety. Filing for bankruptcy can put an end to this harassment, as creditors are required to stop contacting debtors once they file.

  2. It can eliminate unsecured debt: Bankruptcy can discharge many types of unsecured debt, such as credit card debt, medical bills, and personal loans. This means that people can get a fresh start without having to worry about these debts hanging over their heads.

  3. It can prevent foreclosure or repossession: If people are behind on their mortgage or car payments, they may be at risk of losing their homes or vehicles. Filing for bankruptcy can stop the foreclosure or repossession process and give people time to catch up on their payments.

  4. It can create a payment plan: Chapter 13 bankruptcy allows people to create a repayment plan for their debts. This can make it easier for people to manage their debts and can reduce financial stress.

Overall, bankruptcy can be a powerful tool for reducing financial stress and starting fresh. While it is not the right choice for everyone, it is important to consider all options when dealing with financial difficulties. If people are feeling overwhelmed by their debts, they may want to speak with a bankruptcy attorney to learn more about their options.

Living Paycheck to Paycheck? Bankruptcy can help.

in Bankruptcy

Living paycheck to paycheck can be an incredibly stressful and challenging experience. It can leave people feeling like they are trapped in a never-ending cycle of debt and financial insecurity. In fact, according to a recent study by CNBC, 58% of Americans are living paycheck to paycheck. This is a startling statistic that highlights just how widespread the issue is.

While there are many strategies that people can use to try and break the cycle of living paycheck to paycheck, bankruptcy is one option that is often overlooked. Bankruptcy is often seen as a last resort for people who are struggling financially, but it can be a powerful tool for those who are living paycheck to paycheck.

The first thing to understand about bankruptcy is that it is not a silver bullet solution. It is not going to magically solve all of your financial problems overnight. However, what bankruptcy can do is give you a fresh start and a chance to get back on your feet.

There are two main types of bankruptcy that individuals can file for: Chapter 7 and Chapter 13. Chapter 7 bankruptcy is also known as liquidation bankruptcy. It involves selling off all of your assets (with some exceptions) in order to pay off your debts. Once the assets are sold, any remaining debts are discharged. Chapter 13 bankruptcy, on the other hand, is a reorganization bankruptcy. It involves creating a repayment plan that allows you to pay off your debts over a period of three to five years.

So, how can bankruptcy help those who are living paycheck to paycheck? Let’s take a look:

  1. Stop collection calls and harassment

If you are struggling to pay your bills, you are likely receiving collection calls and letters on a regular basis. These can be incredibly stressful and can make it even harder to focus on getting your finances in order. Filing for bankruptcy will put an immediate stop to these calls and letters, giving you some much-needed breathing room.

  1. Eliminate unsecured debts

Unsecured debts, such as credit card debt, medical bills, and personal loans, can quickly spiral out of control. With interest rates and fees piling up, it can feel like you are never going to be able to get out from under them. Filing for bankruptcy can eliminate these debts, allowing you to start fresh.

  1. Protect your assets

While Chapter 7 bankruptcy is called a liquidation, there are exemptions that can protect some or all of your assets. This means that you may be able to keep your car, home, and other important possessions. Additionally, Chapter 13 bankruptcy allows you to keep your assets while you work to repay your debts.

  1. Improve your credit score

While bankruptcy will initially have a negative impact on your credit score, it can actually be a positive in the long run. By eliminating your debts, you will be in a better position to rebuild your credit. Additionally, bankruptcy stays on your credit report for a maximum of 10 years, which means that you will eventually be able to move on and start fresh.

In conclusion, while bankruptcy is not the right choice for everyone, it can be a powerful tool for those who are living paycheck to paycheck. By eliminating unsecured debts, protecting assets, and providing relief from collection calls and harassment, bankruptcy can give people the fresh start they need to get their finances back on track. If you are struggling financially, it may be worth considering bankruptcy as an option. If you need help, contact a competent bankruptcy attorney to explain to you how bankruptcy can help you overcome your financial problems.