Most people make quite a few financial decisions that could be big enough to impact the rest of their lives. For instance, buying a home, taking out student loans for school or even getting a car loan can bind an Escondido resident to a financial obligation for years to come. The decision to file for personal bankruptcy can be equally impactful.
For some Escondido residents, financial problems are a creeping issue that only seems to be out of control after years of problems finally catch up. For others, a sudden life event, like a divorce or a medical issue, could throw a carefully planned and stable financial plan completely off the rails. In some cases, a personal bankruptcy filing may be the right decision.
Our Escondido readers know that filing for bankruptcy is one of the most efficient ways to address overwhelming debts of all kinds. Each year thousands of California residents file for personal bankruptcy and most of them are able to get out from under a crushing debt burden. But how common is filing for bankruptcy nationwide?
Most people don't consider filing for bankruptcy until they have explored every other available option. In many cases, this is the prudent thing to do. After all, there are many different ways for California residents to address their financial issues, even the most serious ones.
Like it or not, we all have to make difficult decisions at some point in life. Whether it concerns our health, our family or our finances, most people will take the time to talk with someone they trust before they come to a final decision. For married couples, things a bit easier, as a husband and wife can openly discuss the problems they are going through and come to a decision that they both agree is the best approach going forward.
We have all seen the stories about celebrities and professional athletes who, at one time in their career, made millions of dollars - but then they end up filing for bankruptcy. Most of the time this just goes to show that all types of people can end up facing financial challenges for a wide variety of reasons. It is rare, however, that we ever hear about people who rebound from these types of situations and get their financial issues under control. NFL quarterback Michael Vick is one of those success stories.
When an Escondido resident is contemplating whether or not to move forward with filing for bankruptcy, this enormously important decision is often made under less-than-optimal circumstances. For instance, many people who are facing financial challenges are dealing with medical issues that are driving up their debt burden, and as a result they have to worry about both their health and their financial problems. Or, others have lost their job and despite their best efforts simply cannot find another one in today's economy. But, for many people, the prospect of filing for bankruptcy comes up amid talk of a divorce.
Many of our Escondido readers probably saw the surprising news about former Los Angeles Kings hockey player Jack Johnson and the reports about his financial troubles. Johnson, who now plays for the Columbus Blue Jackets, is set to earn a salary of $5 million dollars this year. But, despite having an income that most people could only dream of, Johnson has filed for personal bankruptcy.
There are so many factors to consider for an Escondido resident who is contemplating whether or not to file for bankruptcy that it is understandable if tax considerations are at the bottom of the list - or even forgotten altogether. No one likes to think about taxes, but with the end of the year fast approaching it is important to know that there can be significant tax implications both in the planning stages and in the aftermath of a personal bankruptcy filing.
For California residents facing severe financial problems, filing for bankruptcy is certainly an option. A personal bankruptcy filing can discharge debt and leave the filer with fewer monthly bills to worry about all the time. From there, the filer will slowly be able to see that moving forward with financial issues is likely to be much easier.