Plenty of myths surround our personal struggles with debt and the state of our national economy. One largely-unspoken myth is that everyone is “doing well” financially — or at least doing better — when the economy is said to be in a good place. By certain measures, the American macro-economy has been healthy in 2018, but millions of Americans are still struggling to pay their bills.
Should the notion that the economy is “good” influence your decisions about debt relief?
Macro and micro economics
The truth is that stats on economic growth, the Dow, and unemployment numbers mean little, practically speaking, to individuals and families struggling with serious debt. Many debt problems originate with a medical event or illness, a job loss, a business problem, a divorce or another significant life challenge.
In some cases, bankruptcy can help solve the debt problem and alleviate the stress. It can be helpful to consider the following facts that relate to the economy and personal bankruptcy:
- Debt created by a major income reduction — like that from a layoff or job loss — can linger for years. (For many people who get another job a few months after losing one, there may be credit card or loan debt accumulated during lean months when they were out of work.)
- Divorce can create many financial difficulties, even for people who are earning more than they’ve ever earned.
- Although your house may have greatly increased in value in recent years, that equity may be unavailable to help you pay bills and deal with debts.
- Discharging or reorganizing debt through Chapter 7 or Chapter 13 can allow many consumers to reboot financially — and start saving and taking advantage of other benefits of a robust economy.
Get the advice you need
If you’re considering bankruptcy as a debt relief option, you need good, reliable advice. Reading the news and talking to friends and family members may not be enough. Talking to an experienced bankruptcy attorney can clarify things and help you understand the choices you have.