Losing Your Job and Bankruptcy
Most of us live close to pay check to pay check. Credit cards help because we can use them to day and pay something on it at the end of the month. We accept the balance is growing but know well the car will be paid off in a couple years and then we will double up on the payments. The offers come in all the time “Here its summer time you need to fix up the house. Use this card and there will be no interest and no payments for a year.” Yes its true we do need to fix up the house. The same thing happens with a lot of the furniture stores.
When the bills come in hopefully there is enough to pay them but if not well then the games begin “I can pay the house payment in two week before the late fee hits.” The credit cards are used more and more.
Then it happens there is a lay off at the job. The first though is It will be ok but what causes people to consider bankruptcy is when it doesn’t.
If you do find the job that will pay the house and car and basic living then the chapter 7 can discharge the credit cards,because once you miss any payments with the credit cards they are not so nice interest rates are at the 30 percent mark instead of the zero to ten percent. Minimum payments have double or tripled. The chapter 7 would discharge the credit cards and you keep making the car and house.
The chapter 13 would be used if during the unemployment period you had fallen behind on the house and car the chapter 13 will allow you to catch up on the car and house and take care of the credit cards at he same time through a payment plan.
Please fill out our free evaluation form to determine if bankruptcy is right for you.
