Most Americans work hard and pay their bills in a timely manner. Most people, when getting credit cards or other types of credit, have every intention of paying that debt on time and, eventually, in full. Unfortunately, various life events can make paying these bills, in addition to regular household expenses, quite difficult. This can often lead to problems with creditors and debt that continues to grow. Fortunately, a Bankruptcy Lawyer in Puyallup WA can help.
Managing debt
Many people live paycheck to paycheck where they have little or no savings after paying all their expenses for the month. Most people manage to create a system to keep all their living expenses and debt payments up to date. However, one unexpected event or bill can throw off this entire system. A job loss, injury or illness, or even a car breakdown causes money to be spent that wasn’t available.
Getting overwhelmed by debt
That one unexpected event can create a serious snowball effect. Money is used to pay the unexpected bills that were meant for utilities or credit card payments. These bills become late and create additional fees and interest that make the bills higher. This can create higher bills and issues that are even more difficult to pay and create even more costs. If a job loss occurred, none of these debts can be paid. Before long, creditors are calling and demanding money that is not available.
Bankruptcy
A Bankruptcy Lawyer in Puyallup WA provides help for these situations. The attorney can assist in filing for bankruptcy. For those with limited income, a chapter 7 bankruptcy is the best option for getting out from under the mountain of debt. In this type of bankruptcy, any property, outside of the debtor’s car and home, are sold to pay back creditors. Any remaining debt is discharged.
For many, bankruptcy can provide the relief needed from crushing debt. It will stop harassing phone calls from creditors and the stress related to continuously increasing debt. This option can allow a person to start fresh and get their finances back on track. However, this process can be confusing and difficult. It also requires a hearing before a judge. Fortunately, an attorney provides assistance to make this option easier and will even attend the court hearing to ensure the process is complete.
