17 Feb Bankruptcy Clients Of The Month: Parents In Financial Trouble
Bankruptcy clients of the month: Parents. Specifically, parentswith adult kids that need monetary help.
I seem to be seeing a lotmorepeople whoseadult children have moved in with them.As the economy grows worse, children seem to be moving home in greater numbers.The parents Iam seeingare seniors living on fixed incomes, orpeople whoare earning just barelyenough money to pay for their own expenses. The added costs ofthe additional mouths to feed and covering their other needs are too much for the parents’ budgets. I see clients who have tapped into their home equity, taken out loans or run up credit cards trying to cover everyone’s needs. Soon theyare unable to pay their bills, are drowning in debt, on the verge of loosing their houses/cars. Bankruptcy is often the only option at this point.
Many of these children are moving home, often bringing spouses and their own kids.My clients are not guilty of overspending on luxuries, but they may be guilty of too much love.
Sometimes Chapter 7 bankruptcy can help wipe out enough debt that the household can make ends meet. A Chapter 13 may be needed to help stop a foreclosure and save the house as well as wipe out unsecured debts.
Ultimately, what needs to be addressed is the clients’ budget, but not just their budget alone. The whole family needs to work the additional household member’s incomes, needs and expenses intothe budgetand look at what they can contribute.
It surprises me when I see clients who are buckling under the financial strain, working hard long into retirement age, or working two jobs to support everyone, and I find out that there are adults in the house that aren’t even looking for work or are unwilling to take jobs because they don’t pay enough money!
Some of the children work, but don’t contribute to the household overhead because all the money they get “go to their own bills.”Many are unemployed,because they justcan’t find work or they may have health issues or disabilities. Often, they are just not willing to work, or at least not at the jobs being offered.
Often, it isn’t the parent’s who come see me that needed to adjust their budget, but the kids who areable to balance their own budgets and paytheirbillsbecause their parents were going broke covering their living expenses! Mahy times the children should have spoken to a bankruptcy lawyer instead of relying on their parent’s income (or credit) to fix their finances.
To balance a family’s budget, you have to look at ALL the members of the family and you may need to pool resources. You have tounderstand where all the money goes. Solving one person’s problemsshould not push another into crisis, and that is what is happening to many parents as children are seeking help for their own financial problems.
My Article onThe importance of a balanced family budget
My Article onHow to save money in your monthly budget
Article Spending and Money Problem? Five Steps to Gain Control by Eugen Melchionne CT bankruptcy lawyer
Article: 10 Steps to Financial Recovery By Karen Oakes OR bankruptcy attorney
Article: Do you suffer from disappearing cash syndrome? by Jonathan Ginsberg, Atlanta bankruptcy attorney
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