Most people strive for a certain standard of living for themselves and their families. It’s nothing extravagant, just a level of comfort that allows them a sense of satisfaction in their home and family life. But for many Miami residents, maintaining that standard has become challenging and has led them to consider bankruptcy. Many have lost jobs, seen home values plummet, or have seen their businesses take in less than they had expected. Often, these people look at their stack of bills and see a black hole and no light at the end of the tunnel.
While those who are only behind a little may be able to tighten their belts temporarily and get back on track, all too often a real financial turnaround is extremely difficult if not impossible to pull off. For those who are feeling this pinch, and are holding back because they want to remain fiscally responsible, there’s a real chance that it might be time to go ahead and file. It’s a chance at a fresh start and a fresh perspective on their finances.
Exactly what happens during a bankruptcy depends on which chapter one qualifies for. Regardless of which chapter, those who file for personal bankruptcy gain an automatic stay on most of their bills, meaning that the majority of their bill collectors will no longer be able to contact them to ask them for payment. This undoubtedly adds an additional layer of relief for those facing financial difficulty.
For most, the need to file for bankruptcy is not because a person has spoiled themselves. Instead, it is usually due to circumstances beyond their control that have arisen as they have merely been trying to live their lives. During the bankruptcy filing, people are asked to take a hard look at their bills before they even file the petition. If there are mistakes made that they will be able to correct in the future, they will be able to see these and make the needed adjustments in order to stay on track and make better choices in the future.
Source: Go Banking Rates, “A 2013 Guide to Declaring Bankruptcy When You Owe Banks More than You Could Ever Hope to Pay Back,” Nicholas Pell, Jan. 24, 2013