When financial problems hit, it can feel like there is nothing else going on in the world. Debt can be burdensome, and when it becomes overwhelming, individuals in New Hampshire and elsewhere may start to consider debt relief options. While one is hopeful that they can manage it on his or her own by budgeting, the reality is that when debt piles up because of medical bills and other unexpected bills, it can feel like there is no way out. Filing for bankruptcy may seem like a last resort, but it is a real option that could provide an individual with a fresh financial start.
When people in New Hampshire think of bankruptcy, their first thought may be of Chapter 7 bankruptcy, in which the debtor's assets are collected and sold to pay back creditors. However, another bankruptcy option available to some is Chapter 13 bankruptcy. In this type of bankruptcy, the debtor will execute a three to five-year repayment plan that is approved by their creditors and the court. The plan will have the debtor pay monthly installments to a trustee, who will use those funds to pay back the debtor's creditors.
Not every person in New Hampshire who wants to file for bankruptcy will qualify for Chapter 7 "liquidation" bankruptcy, particularly if they do not pass the Chapter 7 means test because their income is too high. However, filing for Chapter 13 bankruptcy may be an option for these debtors that allows them to keep their property while still paying off their debts. To do so, a repayment plan will be created and approved by the court. And, the repayment plan starts with the debtor.
When individuals in New Hampshire and elsewhere are struggling with debt, their first thought might be that it isn't that big of a deal, as many people carry credit card debt. The problem with debt is that if it continues to go unaddressed, it can get out of control. When debt is unmanageable, it can seem like there is little to no hope of ever getting out of the hole. However, there are real debt relief options, with filing for bankruptcy being one of them.
When a person in Nashua decides to file for bankruptcy, they may initially think of Chapter 7 bankruptcy. This is the type of bankruptcy in which many of the debtor's assets are sold and the proceeds are used to pay back the creditors. Once that is done, many (but not necessarily all) of the remaining debts are extinguished.
For those in New Hampshire who are facing overwhelming debt but feel that with enough time they may be able to meet their financial obligations, Chapter 13 bankruptcy may be an option worth considering. However, it is important to note that not all debts can be discharged through Chapter 13 bankruptcy. For example, child support and spousal support delinquencies generally cannot be discharged, even upon completion of a Chapter 13 repayment plan.
People in New Hampshire can find themselves facing hard financial times through no fault of their own. For example, they may have been laid off from work forcing them to use credit cards for daily expenses or they may have incurred hefty medical bills following a serious illness. When a person simply cannot pay back all their debts, they may want to consider filing for bankruptcy.
Many in New Hampshire at some point fall on hard times financially. They may lose their job forcing them to rely on credit cards for daily expenses. They may experience a serious illness that racks up hefty medical bills. Or, they may find that they have fallen behind on their mortgage obligations and when they try to sell their home to satisfy them, their home is worth less than what they still owe to the lender. These situations are not necessarily anyone's fault, but they could spell financial disaster to even the most fiscally responsible person.