You may be tempted to associate bankruptcy with people or businesses that have made irresponsible financial decisions. However, insolvency can occur for a variety of reasons. For example, a family member may become injured or ill and incur hundreds of thousands of dollars in medical bills. This family did not fall into debt through any fault of their own and bankruptcy can help them overcome the situation. That being said, there may be other debt relief methods that may help you in averting bankruptcy and an experienced bankruptcy attorney can review your situation.
A recent story out of Atlantic City demonstrates that financial issues can happen even to cities and there also may be alternatives to bankruptcy. The city has struggled financially with many closed casinos and resorts and a sharp decline in tourism proceeds. The city was on the verge of filing for bankruptcy and the state was planning to intervene in the process. However, a recent financial plan recently passed that would give the city a chance to resolve its financial issues before turning to bankruptcy.
Individuals can Learn from the Atlantic City Plan
Finances are finances, whether we are talking about a municipality or an individual household. If you are having trouble meeting your revolving financial obligations and would like to avoid filing for bankruptcy, take a look at your spending and see whether you save money anywhere. In some cases, it may be appropriate to downsize your living situation in order to lower your monthly housing payment.
While averting bankruptcy is appropriate in some situations, it is important to keep in mind that bankruptcy is not the end of the world. In fact, many people who file for bankruptcy find themselves in a better financial position than they were just a few months after their bankruptcy is completed. Chapter 7 bankruptcy can actually eliminate many debts, including the following:
- Medical bills
- Unpaid utility bills
- Credit card bills
- Past-due rent
- Personal loans
Call 201-498-9768 today for more information
Just like Atlantic City, there may be steps that individuals can take that may allow them to avoid bankruptcy. Even if there are not, bankruptcy is actually a preferable option to continuing living deeply in debt, in fear of losing your home or car, and having a poor credit rating. To schedule a free initial consultation with New Jersey bankruptcy lawyer John Schettino, call our office today at 201-498-9768.