Filing for bankruptcy is seen by many as something that people do when they are unable to stay in control of their bills, but it's not always that simple. The reasons for filing for bankruptcy can be influenced by a person's age. A younger person's filing often comes as a result of running up too much credit card debt during a time when they did not fully understand credit. A middle age person might file after experiencing unexpected expenses, such as medical bills or home repairs, or after a period of unemployment. Seniors too find themselves considering bankruptcy, and it can be a hard step for many to take. However, it may be the right step, depending on what they have at stake. Here is some information seniors may want to take into account if considering bankruptcy as a debt relief option.
Filing for bankruptcy is a big decision. Many people may suffer financial hardship for a variety of reasons, from costly medical bills to job loss, and can find themselves looking for debt relief through filing bankruptcy. While filing is a freeing in some ways, such as not having to worry about bill collectors calling during dinner, or while you are at work, it can also mean taking a setback to your credit score. Although the thought can seem a bit scary, it isn't the end of the world and it is possible to rebuild your credit after bankruptcy.
Special or unforeseen circumstances may leave you unable to pay your debts, and anyone can file for bankruptcy. However, changes made to bankruptcy laws in 2005 require debtors to pass a means test in order to qualify. Because Chapter 7 bankruptcy discharges your debts, you must first prove you are unable to pay them by passing a means test.
If you have been having financial difficulties, you have most likely been feeling fear, uncertainty and even shame. At a certain point, it seems like the problem has gotten so bad that you can't see a way out of it and are faced with an overwhelming amount of stress and questions you can't answer. It doesn't have to be that way. The truth is that many Americans have found themselves with large amounts of debt for a variety of reasons. Whatever the reason, there are options for you and there is a way out of your current situation.
For people already experiencing the stress of having high credit card debt, the holiday season can be a nightmare instead of magical. The pressure of buying gifts for family and friends can only add to the stress of how to pay for all of those presents on top of credit card bills you already have trouble paying.
People find themselves overwhelmed with debt for a variety of reasons. No matter what the cause, anyone struggling with debt and in danger of debt collection proceedings may begin to feel hopeless. This is natural, but it is important to know that debt is not insurmountable or a bottomless pit that you can't climb your way out of. There are options available and a variety of solutions for your debt problems, which can help you keep your car. The right solution for you will depend on your personal circumstances and eligibility.