The economy has been on a rollercoaster for the past five years, with home values plummeting as lenders foreclosed on homes and repossessed property. Families are finding it more difficult than ever to make ends meet and meet their other financial obligations in the current economic climate. Many people who have never experienced financial troubles before are now seeking financial help from a bankruptcy attorney.
Getting Out of the Mud
In the past, filing for chapter 7 Hemet, had a stigma connected to it, but that has faded in recent years as families have faced growing credit card payments, foreclosures, and dramatically declining home values, leaving homeowners with massive debts and no equity.
If you’re facing foreclosure or the loss of your vehicle due to repossession, you should speak with an attorney of chapter 7 Hemet. He or she may be able to advise you on how to combine or reduce your debt while still keeping your family’s house.
The Causes of the Personal Debt Crisis
The majority of people who discover they’re in financial trouble haven’t done anything wrong. In actuality, the majority of the time, the causes are beyond their control. Many families bought homes ten to fifteen years ago that they now owe more on than the property is worth, and banks have been foreclosing on these homes at an alarming rate.
Medical emergencies can easily grow into hundreds of thousands of dollars in costs, but in today’s economy, fewer people have health insurance coverage.
You have no choice but to seek medical attention, but if you fall behind on payments, you may get collection calls. When you’re attempting to heal, these can be quite distressing. Credit card debt has skyrocketed in recent years as already-struggling families turned to credit cards to pay for necessities like clothing, food, and gas.
Divorce can also have a financial impact. Families now have to pay for two households rather than one, and the cost of divorcing might be prohibitive.
When the partition of assets and liabilities is brought before the courts, some people are left with unpaid bills. Another type of emergency that can lead to the need to file chapter 7 bankruptcy Hemet or 13, is the loss of a job. People are sometimes overwhelmed by the prospect of losing everything, resulting in interest and penalties on present obligations, which just add to the debt load.
There are more hardworking people than ever before straining under the weight of crushing debt. Some of them file for chapter 7 bankruptcy Hemet or Chapter 13 bankruptcy, while others attempt to consolidate their debts and negotiate lower payments. If you’re thinking about filing for bankruptcy, speaking with a lawyer might help you understand your alternatives.
If you can’t pay your mortgage, medical bills, or other bills and are facing foreclosure, now is the time to contact a bankruptcy attorney.