As we get older, bankruptcy seems more like a scary, end-of-the-world option. We start to wonder how we can possible start over. It was easier when you were in your twenties, and maybe even thirties. It seemed liked you had all the time in the world.
Even later in life, bankruptcy can still be the right choice if you are overwhelmed by debt. Don't view bankruptcy as a sign of failure. Instead, look at bankruptcy as a financial tool that will help you restructure and pay off your debt.
Fortunately, there are many resources available in Louisiana to help you understand the bankruptcy process and how it can benefit you.
No income and high debt
As you get older you may be experiencing an increase in expenses like health care. At the same time, your income has decreased due to retirement or another means of exiting the workforce. Living on a fixed income makes it difficult to keep up with unexpected costs, which results in debt.
Even as a senior citizen, it is not too late to have your debt reorganized so that you can manage your repayments and your daily living expenses.
Inability to pay medical bills
Unpaid medical bills are quickly becoming a leading cause for filing bankruptcy. Insurance companies are notorious for denying medical claims and leaving their customers with huge hospital bills.
By filing for bankruptcy, you have the chance to discharge old medical expenses. Before filing, gather up all your documentation so that any unpaid bills can be included.
Overwhelming credit card debt
Making minimum payments will never get your credit card bills paid down. If the minimum is all that you can afford to pay each month, it is time to reorganize your debt. Using your credit card to purchase basic necessities is also a sign that you need to seriously consider bankruptcy.
If you decide to file for bankruptcy, take a moment to go ahead and cut up those credit cards. The court will consider it fraud if it looks like you maxed out your credit cards right before filing bankruptcy.
Your ex-husband just filed for bankruptcy
Getting divorced and suddenly living with half an income is difficult enough on its own, but if your ex just declared bankruptcy you can expect to start hearing from creditors. Any debt that you incurred jointly with your ex is now your responsibility in the eyes of the creditors. They do not care if your divorce agreement designated the debt as belonging to your ex.
Unexpectedly losing your job while you're paying off a car loan and a mortgage can leave feeling like you're about to lose everything. Declaring bankruptcy can give you a lifeline until you are able to get back on your feet.
The problem with this scenario is that the damage caused to your credit by filing bankruptcy may affect your chances of getting certain jobs. Before making the decision to file for bankruptcy while you are unemployed, consider how it might affect future job prospects.
If you are in debt that seems to be out of control, it might be time to consider filing for bankruptcy. A local Louisiana attorney that has bankruptcy experience can help you find the best way to deal with your financial situation.