Bankruptcy can get a bad reputation. When people hear of someone they know filing for bankruptcy, some people assume that money mismanagement is the root cause. However, many fall into financial despair due to circumstances beyond their control. Whether it be divorce, job loss or even medical debt, any of these situations can put responsible consumers in a tight spot.
The current economy is creating financial hardships
As the U.S. labor market took a nose-dive earlier this year, many Americans have lost their jobs. According to the Bureau of Labor Statistics, the country’s unemployment rate now sits at approximately 13.3%.
Despite a recent decline in consumer bankruptcies, one report says there could be a wave of new claims soon. Even with the recently enhanced unemployment benefits, many jobless Americans are relying on credit to get by, increasing their future debt burdens.
Can bankruptcy get me back on the right track?
When consumers are facing crippling debt, Chapter 13 bankruptcy can be a viable option. These are a few of the benefits it can provide:
- It can allow people to keep their homes.
- It can allow people to discharge some consumer debts.
- It can allow people to discharge certain tax debts.
- It can allow people to get on an affordable debt repayment plan.
- It can save people thousands of dollars in late fees, penalties and interest payments.
Countless Americans are struggling during these uncertain times. And if they’re financially overwhelmed, there is help available. Those looking to file for bankruptcy may benefit from the assistance of a trusted legal partner. They can help consumers understand the filing process and what their life could look like moving forward.
