If you’re trying to manage overwhelming debt, you’re not alone. Many individuals and families in Eugene are facing crippling debt through circumstances that may not be their fault. As we’ve discussed previously, financial hardship can hit suddenly through unemployment, an injury or unexpected illness. At the Law Office of Kim Covington, we strive to help people who are struggling with debt. One method that has been effective for countless people is Chapter 7 bankruptcy.
Posts tagged "overwhelming debt"
In Oregon as well as throughout the nation, many people with financial challenges have sought help with high, overwhelming debt in recent years. For individuals or couples, Chapter 13 or Chapter 7 bankruptcies have been able to offer help and the ability to get a fresh start. Many companies as well have found a bankruptcy to be an effective way of restructuring and keeping their businesses afloat.
Many residents in Oregon suffered greatly in the recent housing downturn and economic recession. The break in the housing boom, unemployment and other factors led many people in the state to seek help for their financial challenges. Some people were able to find the debt relief they needed through consolidation plans and others opted to take advantage of the protection provided under either a Chapter 13 or a Chapter 7 bankruptcy.
For many people living in Oregon, a house is more than just a place of residence; rather, it is a home filled with love, laughter and fond memories. So when faced with the prospect of losing your home to foreclosure, it can be extremely discouraging and emotionally devastating. Even when faced with financial challenges such as overwhelming debt and foreclosure, however, you may be encouraged to learn that there are ways to stop foreclosure and find a fresh financial start. Chapter 7 bankruptcy is one such option that you may want to consider.
Many people in Oregon are facing credit card debt. Some of these people may be tempted to ignore their credit card payments. If you ignore your payments, however, the credit card company may come after you. Fortunately, there are ways to get out of debt.
When a person files for bankruptcy, there is a different set of guidelines that must be followed depending on the situation. Those who owe debtors a certain amount of money may be able to keep certain goods they have purchased under federal and state exemptions to bankruptcy laws. Federal exemptions are changed every three years to account for changes in the Consumer Price Index, and these exemptions are only available to consumers during bankruptcy proceedings. The difference between state and federal laws in amounts allowed for exemptions is the most obvious with the Wildcard exemption used by many consumers during the bankruptcy process.
When a person in Oregon does not have the money to purchase the necessary or wanted things for themselves or their family, they may choose to use credit cards to make purchases, or take out high interest loans to meet their obligations. As these loans and cards accrue interest, the debt becomes overwhelming and the person can’t keep up without borrowing more money. Eventually, when the bills pile up and they are looking for ways to get out of debt, they may choose to use bankruptcy as an option to escape harassing creditors and get a fresh financial start.