Life is full of ups and downs, as where there is light, darkness is not far away. Every day we face issues big and small, but some of them might lead to huge problems. Debt is one such issue which occurs very frequently, as, in today’s world, money is what dictates life. So what to do when you feel that you are falling in a vicious cycle of debts and not be able to climb out? San Antonio Bankruptcy lawyers are the solution that you may be looking for,
Scenarios Where You Might Need To File Bankruptcy
Life is prone to bad events, and many such events might slowly grow into huge problems and debts. Some situations which might lead to a high amount of debts are-
- A Medical incident where the problem might start small, but in the end, bills might start piling and your own earnings might not be able to support it. In such a case, to pay the bills, one might get buried in debts and medical loans
- Student loans are not a small amount these days, given how expensive tuition costs might get. But a situation might come where the individual might end up with no job for a long time and is unable to pay the loan back.
- For big enterprises, a situation might arise where a failed commitment, an unsatisfactory project, or market fluctuations may plunge the entire company in debt.
In most such cases, one can file a bankruptcy to save himself from further damages. San Antonio bankruptcy lawyer is here to assist such individuals and organizations.
Things About Bankruptcy You Should Know About
There are 2 kinds of bankruptcies that one can file depending on how large the debt amount is-
- Chapter 7- This kind is for individuals who are in under a debt of a certain amount and is seeking to wipe it. This is the most viable kind of bankruptcy solution as one can walk out with no debts if the person qualifies. Unfortunately, student loans do not fall under this category and is only solvable by talking to your bank and working out a plan to reduce the monthly payment.
- Chapter 13- This kind is of the type, where the amount is above that is eligible for chapter 7. In this, a certain amount is worked out to be paid back to the respective lenders. This will not wipe all the debt but will clear out a substantial amount of it.
But what happens once the case is filed? Bankruptcy alters a few things in your life once filed. All the people who you owe money to will receive a notice notifying them that you are in bankruptcy, which will lead to a number of things. your bank accounts may get shut down, and this might happen without your consent.You will lose all your online payment and banking privileges.
Life might toss a number of things at you that might bring you down. Many might take a long time to repair, and some might leave lifelong scars. But you can rest assured that money will not be the lasting scar in your life if handled properly. Hence it is advised if you feel you are not able o control your losses and debts, file for a bankruptcy with the help of a reliable source.