When finances get thrown out of whack, even minor issues can seem overwhelming because they have a snowball effect on the overall financial situation. When a financial crisis prompts an urgent need for debt relief, bankruptcy may be the most viable option. In Louisiana and across the country, more than 700,000 people and businesses are expected to file for bankruptcy in 2018. While some people hesitate to consider this option for various reasons, others understand its viability toward resolving money problems once and for all.
The Federal Reserve reported that overall household debt throughout the United States in 2017 topped $13 trillion. Household debt includes home mortgages, car loans, student loans and credit card debt. For many people, certain events become the ‘final straw’ regarding financial trouble, such as being threatened with foreclosure or a lawsuit.
There are often several bankruptcy options available. It’s true that it costs money to file for debt relief. However, since many consumer debts are dischargeable through bankruptcy, many people take the funds they would normally be sending as payments toward those debts and apply them to the bankruptcy process instead. It’s also a good idea to speak with others who have successfully overcome similar financial problems to learn what types of options helped them get back on their feet.
Since no two situations are exactly the same, Louisiana residents considering these issues can seek experienced guidance before making any final decisions. The good news is that most financial problems are temporary. Restoring financial stability is often a matter of tapping into the right resources that can point the way to feasible debt relief solutions.
Source: CNBC, “For some consumers, bankruptcy is the solution to crushing debt“, Accessed on April 10, 2018