Some of our Escondido readers may have so many financial problems that they simply have no idea how to approach them. Some people do their best to pay off debt and live within a budget. Others borrow money from payday loan stores and lean on credit cards just to make ends meet. Still others will look into the possibility for filing for personal bankruptcy. No one ever wants to find themselves in this type of situation, but is it really that bad to consider bankruptcy over the alternatives?
When an Escondido resident is considering whether or not they should look into a personal bankruptcy filing, the decision can be driven by a variety of reasons. Some people may have thousands in credit card debt - so much that they think it might be impossible to pay it all back with interest accumulating every month. Others want to stop foreclosure actions on their homes and know that filing for bankruptcy will stay those proceedings. And, increasingly every day, millions of Americans are dealing with medical debt. However, now and in the years to come, there will be millions more facing another kind of debt - student loan debt.
Many Americans find themselves in this situation at some point in their lives: income is stagnant, bills are piling up and they are using one credit card to make the minimum payments on several others. Debts seem to be ever-growing, no matter what amount of payments are made. In a word, they are "underwater." They owe more than they make. People in this kind of situation, perhaps even some of our Escondido readers, will then ask themselves, "what now?"
Our Escondido readers may have seen the latest report on the unemployment rate in America, which recently ticked back up a bit. Even though more jobs are being created than are disappearing, most of the indications point toward a painfully slow economic recovery, in California and throughout the country. However, another barometer used by many experts, the rate of bankruptcy filings - both Chapter 7 personal bankruptcy and Chapter 11 business bankruptcy - provided a bit of good news in the latest figures.
We're told that we are living in the "Information Age." From a casual look at daily life in America, it is easy to see why. The Internet has brought information to people who may not otherwise have access, and virtually every home in the country has a television on which news from around the world can be accessed every day. Of course, there are both positive and negative aspects to this amount of available information. But, when it comes to considering a personal bankruptcy filing, an Escondido resident can never have too much information.
When many of our Escondido readers consider filing for bankruptcy, one of the primary factors to be brought up is probably this: How will I be able to get by with a bad credit report? It is true that a personal bankruptcy - a Chapter 7 bankruptcy in particular - can stay on a credit report for years, and in many ways this can restrict options for financing in the future. However, once the bankruptcy process is complete and an individual or family is ready to head toward that fresh start financially, a recent article suggested a few tips which might help raise a credit score faster.
There are many reasons why people end up filing for bankruptcy protection. But no matter what the reason, whether it is a Chapter 7 personal bankruptcy or a business filing for Chapter 11 protection, the decision is usually not an easy one. For most people bankruptcy is an option of last resort, but it can be easy to forget that it is actually the best option in many situations. Nonetheless, a recent article offered a few tips for those who are facing financial challenges but are still hoping to put off a bankruptcy filing.
For some of our Escondido readers, the fact that the politicians in Washington, D.C., are trying to figure out the country's fiscal future can be somewhat frightening. California residents are all too familiar with the way some public officials handle monetary affairs, and the nation could be facing an even bigger challenge in the coming years - student loan debt.
Most of our Escondido, California, readers wouldn't dispute that the economy almost seems to be barely crawling along. There are many people throughout the country, including in California, who are struggling just to make ends meet, while others are on the brink of financial collapse and may be looking to stop foreclosure on their homes. Either way, financial troubles can happen to anyone, and, in California, that includes celebrities.
Our Escondido readers may be aware of some of the many factors that come into play when a person considers filing for bankruptcy. First of all, there are different types of bankruptcy to consider. But, for many of those individuals who do not have a sufficient income, Chapter 7 is the type of personal bankruptcy they are most likely to consider. In this type of bankruptcy action, known as a "liquidation" bankruptcy, the filer lists all of their non-exempt assets, which are then sold off with the proceeds going toward the balance owed to creditors. Any remaining unpaid balance is then discharged.