If you or someone in your family has spent time being treated at a hospital recently, you know how expensive medical care is. Whether someone suffers a serious injury from a car accident, faces a cancer diagnosis or experiences a heart attack, the costs mount quickly, almost instantly becoming overwhelming.
There is no doubt about it; credit card debt is growing. In fact, some projections show that total credit card debt in the U.S. will hit the $1 trillion mark for the first time by the end of the year.
Many people avoid bankruptcy because they think they will lose everything. However, the fact is that most individuals are able to keep many of their assets during bankruptcy by using an effective legal tool known as bankruptcy exemptions.
Unfortunately, many people wait far too long to file for bankruptcy protection. In fact, many will first try any other option available before even considering bankruptcy as a solution to their financial problems. They cash out their retirement accounts, refinance their homes and even borrow money from friends and family just to keep afloat - mistakes that can prove costly down the road.
According to a recent review of federal bankruptcy data conducted by NerdWallet - a financial information organization - six out of the 10 states with the highest personal bankruptcy rates can be found in the South. Topping the list with 553 bankruptcy filings per 100,000 residents is Tennessee.
Many people fear that they will lose everything they own once they decide to file for bankruptcy. However, this belief is simply not true, especially in Tennessee. In fact, many people who file Chapter 7 bankruptcy are able to keep a great many of their assets, while at the same time eliminating significant amounts of debt.
When you file for bankruptcy, you hope that your financial situation will change for the better in the near future. And when it comes to the automatic stay, you are exactly right.
When it comes to personal bankruptcy, you are sure to have many questions on your mind. Most importantly, is this something that can improve your financial situation?
There may come a time when you believe that bankruptcy is the only way to escape your financial troubles. While this could be the answer you have been searching for, it is important to realize that you have other options. For example, debt management may be the right strategy for you at the present time.
Have you fallen behind on your mortgage payments? Are you concerned that your lender will begin the foreclosure process in the near future?