Filing bankruptcy can be a difficult financial and emotional issue. People don’t want to admit their debt is out of control. Sometimes they feel like they have failed to meet their responsibilities, and they wait as long as they can before filing bankruptcy and getting debt relief.
Credit Card Debt
According to CNBC news, American consumers are $26 billion in credit card debt. The article goes on to say that if you carry the national average of $4,293, then by just paying the minimum payment, you would stay in debt for approximately 15 years and spend more than $3,800 in interest.
Medical Debt
Rarely do we plan for an emergency. When they do happen, we are usually left with a large bill as the aftermath. Even if we may have medical insurance, sometimes the insurance doesn’t pay for the medical care we need. And then there are those Americans that make too much to get assisted medical, but not enough to pay the high rates. Medical bills can rack up debt quickly with the hospital, doctors, medicine, tests, equipment, etc.
Payday Loans
Payday loans are a revolving door of debt. You have a bill coming up, and you need to pay it, or there will be consequences, so you take out a quick loan at a payday loan center. When you can’t make the payment at one payday center, you take out another loan one to pay on the first one. You try to keep ahead of the debt because you know one late payment, and your interest rates get jacked up higher. Some states outlaw these centers for a good reason. These places are just short of racketeering.
Utility Shutoffs
If you miss too many utility payments, they will turn off your services, and you will have to pay another fee to have them reinstated. Either we forget to pay, or most likely, we just don’t have the money at the time.
All of these issues can be resolved with bankruptcy. Chapter 7 will eliminate your credit card debt, medical debt, past utility bills, and more in as little as six months. If you need to protect your home or other secured assets, Chapter 13 bankruptcy allows you to catch up on your arrears with a monthly payment from three to six years.
If you would like to know if bankruptcy is the right choice for you, contact a Rio Grande bankruptcy attorney today.