The holiday season can inspire financial strain, often especially for parents looking to make memories for their kids. For many, the added expenses of gifts, travel and holiday celebrations can lead to a budget crunch and additional debt. In some cases, this financial stress might even lead people to consider bankruptcy as a solution, especially if other kinds of debt are already significantly impacting their family finances.
Bankruptcy can offer a fresh start for those overwhelmed by debt, but it isn’t the best solution for every situation. For example, if someone is struggling with a single credit card account, there are ways to manage this burden that make more sense than bankruptcy. However, if medical debt, a risk of foreclosure or so many different debts being juggled at once is making life miserable, bankruptcy may be a great option.
Contemplating the options available to debtors
Different types of bankruptcy are available to individuals and married couples filing jointly. Chapter 7 bankruptcy is available to low-income earners and doesn’t require a repayment plan. Chapter 13 bankruptcy, allows for the restructuring of debt and requires a repayment plan over three to five years.
If you’re considering bankruptcy, it’s advisable to seek legal guidance before either committing to this plan of action or dismissing the opportunity. An attorney can provide personalized advice based on your unique financial situation and help you understand the ramifications of declaring bankruptcy.
Once your circumstances have been analyzed, you may learn that either filing for bankruptcy or engaging a bankruptcy alternative can help to free you from the stress that is impacting your holiday and that could otherwise define your new year in truly negative ways.