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You've been struggling with money for some time, and tax time seems to be when you can make up for it. You get enough money to hold you over and to help you get a few things paid off.
This year, though, you found you won't get as much as you expected. Receiving a couple thousand dollars back is great, but it's not enough to make a dent in the bills that you're behind on. You'll be back in the same position within a month.
Sadly, recent events in the United States and the rest of the world are causing many to be laid off from their employment. This is causing a huge amount of stress for many families in North Carolina. Those who were already struggling with significant debts before they became unemployed could feel that they are now at breaking point, and they may worry that they will lose their home or be evicted.
It's important to note that there are in fact safety nets in place for those who are struggling with overwhelming debts. Chapter 7 bankruptcy exists to help people in exactly this situation. If you are worried about how you will get through the coming months, you may wonder whether now is the time to file for bankruptcy. The following are some of the reasons why filing for bankruptcy after a job loss could be right for you.
If you are dealing with overwhelming debts that seem impossible to pay off without help, likely, you've already considered filing for bankruptcy. Most private debtors usually have a choice between Chapter 7 and Chapter 13 bankruptcy. The decision that they make will usually depend on the amount of their income and their income stability.
If you have a very low income or you have recently lost your job, you will likely benefit most from filing for Chapter 7 bankruptcy. If you have a stable income that is higher than average for your state, you may not be eligible to file for Chapter 7 bankruptcy, and you may need to go through a Chapter 13 repayment plan instead. If you are anticipating filing for Chapter 7 bankruptcy in the near future, the following are some things that you should avoid doing.
When you are having cash flow problems, the use of credit cards can quickly become addictive. You may find that you worry about not being able to pay all of your bills, so you use your credit card for everything that you can. Since it's technically not your money, using a credit card can lead to making impulse purchases. You may justify these purchases by convincing yourself that you will find the money to pay it off at some point in the future.
It is for these reasons that credit cards can be very detrimental to a person's finances. If you have become highly dependent on multiple credit cards and you are worried about the effect it is having on your finances, consider taking action to stop the vicious cycle. The following are some ways in which you can put a stop to credit card dependency.
It's estimated that between 25% and 50% of all bankruptcies include a significant amount of medical debt. Those who are struggling financially may find that unexpected medical bills are the final straw that causes them to file for bankruptcy to clear all of their debt.
If you have recently incurred a significant amount of medical debt, you are likely feeling overwhelmed mentally. Not only do you have health issues to worry about, but you are also probably feeling trapped by your financial situation. While many aspects of your circumstances are likely to be out of your control, it is important that you identify the aspects that you can influence, and take action accordingly.
Unfortunately, significant debts are a reality for many hardworking people across the United States. It's common for people to feel guilt or shame regarding their debts, and due to this, they may experience some level of denial, choosing to continue maintaining the lifestyle they are accustomed to by using credit cards as funding.
However, for those not willing to address their debts, the problem will not go away. In the majority of circumstances, it will be necessary for debtors to go through bankruptcy to get relief from their debts and to start living their life without such a heavy burden. The following are some of the most common reasons why people get into debt and need to file for bankruptcy.
Filing for bankruptcy is a great way for those struggling with overwhelming debt to get relief. However, some people are hesitant about taking action to file, even when they are in desperate financial circumstances. This is often due to the stigma associated with bankruptcy. In addition, many prospective bankruptcy filers worry that they will lose their home when filing for bankruptcy.
If you are in a situation where you are considering filing for bankruptcy, it is a good idea to gain an objective overview of the process. By learning for yourself the benefits of bankruptcy and the difference between Chapters, you will be able to make a decision in your own best interests.
Taking the decision to file for bankruptcy is a huge step. It means that you have accepted the extent of your financial issues and that you are committed to changing your life for the better. Many people spend months or even years in denial about the extent of their financial problems, but when they finally decide to address them, their situation usually begins to improve.
This is not to say that taking action to file for bankruptcy is always a wise choice. It's is important that you reflect on your situation carefully and that you choose a bankruptcy Chapter that will compliment your circumstances. The following are certain things that you should consider if you are planning to file for Chapter 7 bankruptcy.
Many people believe the problem of mounting medical bills is one of the major reasons for declaring bankruptcy.
However, a 2018 study looks at this conclusion from a different angle and throws out further thoughts for consideration.
The bankruptcy process can be complex, yet beneficial, to those who choose to embark upon the journey. While it is quite possible that parties will have to forfeit certain assets during the process, it is possible to maintain other assets.
Filers can achieve this by utilizing certain bankruptcy exemptions that they qualify for. In North Carolina, there are a few important things to understand about this option.
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Wilmington,
NC
28401
Phone:
252-558-1374
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New Bern,
NC
28560
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252-558-1374
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27834
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