Many people live paycheck to paycheck. This means that they get just enough on a paycheck to cover their expenses until the next paycheck, with little or no extra money to save for an emergency. This can leave many people vulnerable and unable to maintain their finances when the unexpected expense occurs. An illness, injury, or unexpected bill can start a snowball effect of financial problems. Fortunately, a Bankruptcy Attorney In Tacoma Wa can help.
Financial snowball effect
An illness or injury that causes a person to miss work, can easily create a rift in one’s ability to keep up with bills. If that illness or injury required medical care, that can create even further financial burdens. This can cause bills to be paid late or even terminated. This can also have detrimental effects on a person’s credit. Poor credit scores can make it difficult to get further credit, rent or purchase a home, or even get some jobs. This can create even more financial problems.
Finding relief
As this financial snowball effect continues to roll, a person can lose a lot of the things they need to live and can find themselves unable to keep up. Fortunately, there are options that can help with these situations and provide relief for those facing such financial burdens. Bankruptcy can help reorganize or remove debt to allow a person to start again. This provides the relief needed to get back on their feet again.
Types of bankruptcy
Chapter 13 bankruptcy is a reorganization of debts. This allows a person to make a plan through the court system to pay off all their debt within a few years. There is also Chapter 7 bankruptcy for those with little or no income. This type allows a person to discharge their debt that is causing serious financial burdens. However, those who file Chapter 7 may need to liquidate any property outside their home and personal car to pay back this debt.
Bankruptcy can be a great relief to many people. However, the process can be confusing and requires a court appearance. A Bankruptcy Attorney in Tacoma Wa can help with the entire process. They understand the filing and court process and will assist with every aspect. This process can provide the needed help for anyone suffering from financial burden to start new.
