27 Oct Attacking Financial Problems With Timely Advice
We all handle medical problems differently. Go to any Emergency Room and you may wonder why the guy experiencing chest pains for the past week didn’t come in earlier and why the kid with the splinter is there at all.
Financial problems are the same. Some delay getting financial counsel, while others are pro-active and want to prevent a problem before it becomes uncontrollable.
I had two very interesting calls the other day. One came from a single man in his twenties who was in obvious distress. He had no children, no real estate and surprisingly no credit card debt. He also had no medical bills, student loans, or back taxes. He was in good health and had a steady job. So, what was his problem?
After a few minutes, I discovered that he had no debt other than 13 payments remaining on a vehicle lease. He was struggling every month to make the lease payment and was just tired of the struggle. He was thinking of surrendering the car and dealing with the problem later . . . . through a possible bankruptcy.
My advice for him was to NOT file bankruptcy. He was young, had no particular time commitments (i.e. family), and should consider getting a second job to earn extra income. He only needed $ 5,000 over 13 months to complete the lease. I gave him a few other ideas and was happy to tell him that bankruptcy was not the solution to his financial splinter.
My second call came from someone who did NOT want to file bankruptcy, but was just calling for advice. She was a single parent of two children, received no child support, and was struggling on a very modest income.
She earned considerably less than themedian income for a household of three. She explained how she was current on all her credit accounts except for one and considered herself managing pretty well despite owing more than $ 50,000 in credit card debt.
I was curious how she was able to work such magic and stay current on most of her bills. After listening to her monthly budget, I got my answer. She was living in a fantasy.
She had no health insurance, no life insurance, budgeted no money for household maintenance (which typically runs 1 to 1.5% of a home’s value), no money for vehicle maintenance, and claimed to need only $ 75/ week for groceries.
I had heard enough. My advice to her was to file a Chapter 7 bankruptcy and get a fresh start immediately.
She was in survival mode. She had walked this financial tight-rope for so long, she forgot how dangerous it really was. She was jeopardizing her health (no health insurance) and the welfare of her children (no life insurance) all for a debt she would not be able to repay in this lifetime.
If you are struggling with more than $ 10,000 in unsecured debt, here is what you must understand. Financial problems just don’t go away.Most will worsen unless timely advice is sought. Sometimes budgeting and repayment is the answer, while other times protection under the bankruptcy code should be considered.
If you are interested in having your financial problem diagnosed, you should contact a skilled financial attorney today. He will take the time to understand your unique situation, then develop a plan to help you restore your financial health.
Bankruptcy Law Network (BLN)
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