Looking back, the problems started small. Your credit cards had been maxed out for sometime, but you had always been able to make the minimum payments when they were due. Some times, in fact, you were able to pay down the line of credit on your personal checking account and pay more than just the monthly payment on the highest interest cards. Just when you seemed to be making a little bit of progress, however, you faced another unexpected financial obligation.
First, it was the necessary $15,000 siding replacement cost for your house. Two summers ago you had paid to have the soggy and molding siding on the back of the house replaced. Before you were ready for the extra expense, however, you found out that the damage at the front and on the one side was almost worse than what had occurred on the back of the house. Because the credit cards were mostly maxed out, you simply could not find a way to cover this incredible expense.
Next, a simple trip to get the oil changed in the family van indicated that both the power steering hose and the rear main seal of the oil pan would likely need to be replaced. The dealership cost just for investigating the exact details would cost $200 to $300. The possible replacement costs to contain the two leaks could be as much as $2,000. It seemed that the paid in full van that you had expected to keep driving for several more 1,000 miles would need major repairs. The looming possibility of having to replace this vehicle was even more frightening.
Finally, the late payments on your home mortgage were becoming more frequent. Several notices from the lender indicated that you were dangerously close to defaulting on your home loan. A home loan that had been refinanced several times to combine and “eliminate” previous credit card debt. In short, you owed more on the home mortgage than you could possibly expect to sell it for, especially with the major siding damages on the front of the house.
Although you never expected to find yourself in this position, it was looking more and more likely that you would need to talk to a bankruptcy lawyer about the possibility of filing a bankruptcy claim.
Before Filing a Bankruptcy Claim Consider All of Your Legal Options
Whether you find yourself in financial trouble as the result of medical bills from a personal injury accident or from years of extended credit and high interest rates, most experts advice seeking the assistance of a bankruptcy attorney. the slippery slope of personal financial crisis can seem even more overwhelming without reputable legal advice.
Consider some of the following statistics about financial causes of bankruptcy situations in America:
- 95% of Chapter 7 bankruptcy claims are successful with an attorney.
- 97% of 2014 bankruptcy claims were personal.
- 3% of 2014 bankruptcy claims were business.
- The states of California, Florida, Illinois, Georgia, and Ohio had the most bankruptcies in 2014
- 75% of Americans live paycheck to paycheck.
- 27% of Americans have no savings at all.
- 62% of personal bankruptcies in the America are the result of medical expenses.
Consulting a legal attorney early on in a possible bankruptcy situation can mean that they attorney may even be able to help the client avoid the filing altogether. For instance, in the event of a personal injury, an attorney may be able to uncover possible avenues for recovering damages from the party responsible for causing the injury. did you know, for example, that 32% of all car crash fatalities are caused by drunk driving? Another 31% are caused by speeding and 16% are caused by driver distraction. In the case of injury, rather than death, the damaged party may have been initially relieved that he or she could walk away from the accident. Months later, however, that damaged party may be paying for extensive medical bills that were caused by the accident and that are creating financial hardships.
Financial problems can snowball and become major issues. Whether your financial woes are the result of over extended credit card debt, insurmountable medical expenses, or other unexpected family emergencies, getting the best legal advice before proceeding with a bankruptcy claim is a smart move. Learn more at this link.