Millions of people struggle to pay their monthly bills on time. According to a survey conducted by CareerBuilder, eight out of every 10 people live paycheck to paycheck. What this means is that an unexpected financial obligation, job loss or long-term injury can put someone in the position of being unable to pay their bills.
Often, these people juggle their finances, paying one bill one month and a different one the next to make sure nothing gets too far past due. Eventually, however, this can create an untenable situation, which can lead to bankruptcy.
No Shame in Bankruptcy
The first thing to understand is that there is no shame in bankruptcy. Things happen that are out of the control of the person in debt, and this can create the need to file for bankruptcy. About a million people filed for bankruptcy last year, so anyone that feels alone in this should understand that they are not alone, and there are others that understand.
Alternatives to Bankruptcy
There might be alternatives to bankruptcy to consider. In some situations, it’s possible to work with debtors to create a new repayment plan in order to get things back on track. Other times, someone might qualify for a debt consolidation loan that will allow them to pay off their debts and have a single payment. Often, this option reduces debt by several hundred dollars a month, but not everyone can qualify for a loan.
Filing for bankruptcy does impact credit. Chapter 7 will be on a credit report for 10 years while chapter 13 will remain on the report for seven years. This can impact the ability to get a loan, credit cards and more, or increase interest rates on these loans.
Working with a Lawyer
While working with a bankruptcy lawyer isn’t a requirement, it should certainly be a consideration. There are some specific laws in place that have to be adhered to prior to being able to file for bankruptcy. In addition, the paperwork can be quite complex and one mistake will lead to having to refile the documents, which delays the process by weeks or months.
If you’re in the type of debt that you simply can’t repay, then bankruptcy might be an option for you. It’s important to understand your options and to speak with an attorney. If you would like to learn more, visit www.kanialaw.com/tulsa-attorneys/tulsa-bankruptcy-attorneys today.