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Eugene Bankruptcy Blog

10 signs that your debt may cause you big trouble

A credit card or loan can bring you a feeling of freedom. If you are short on cash, you can still get the things you want. However, like any good thing, too much can be detrimental. The freedom you feel using that credit card may soon turn into a feeling of imprisonment.

It is not always easy to recognize when debt is becoming overwhelming. You may think you are on the right track. What you may not realize is that one financial setback, such as a job loss, car repair or medical emergency, can send your budget tumbling down around you. So how can you know if your debt is reaching the danger zone?

Are medical bills wiped away in personal bankruptcy?

Everybody understands medical care can be expensive, but it can be hard to wrap your head around just how devastating skyrocketing medical bills can be. Hundreds of thousands of Americans know this reality all too well, however.

According to one CNBC report, about two-thirds of all bankruptcies in America are because of medical issues. That could be either due to expensive care, or lack of income because the health issue made it impossible to work. Researchers estimate every year more than half a million Americans file bankruptcy because of medical bills. In bankruptcy cases, what exactly happens to medical debts?

Saving your home: Chapter 7 vs. Chapter 13 bankruptcy

Facing the foreclosure of your home can be terrifying. You may feel overwhelmed at the prospect of losing your family home but at a loss for how to challenge the bank or lender from overtaking your house.

Even when the foreclose sale is just days away, you still have options. In some situations, working out an agreement with your mortgage servicer or even filing a lawsuit against the lender may allow you to stay in your home. However, if you find yourself facing insurmountable debt, filing bankruptcy may be the best option to potentially save your home and relieve you of such overwhelming debts.

Should you file Chapter 7 or Chapter 13 bankruptcy?

If your household finances feel out of control, you can use bankruptcy as a trampoline to bounce back from debt. Bankruptcy can stop creditor harassment, threats of foreclosure and can even wipe away your debt entirely. This may significantly reduce your stress and start you on the path to better credit. However, it is not a decision to make lightly.

You can file bankruptcy under one of two categories, Chapter 7 or Chapter 13. One may fit your situation better than another depending on your state. You might be able to keep your home and other assets. Only a financial advisor in Oregon can make the best recommendation for you.

Ways to avoid bankruptcy before it is too late

The word “bankruptcy” brings up a lot of negative emotions for most people, as it carries a heavy stigma, and it can be a long road to getting back on your feet.

While there are many people who choose to file for bankruptcy (nearly 800,000 in 2016), there may be things you can do to avoid filing yourself. This post will look at ways to help you evade a bankruptcy claim, as well as how to rebuild if you realize that you cannot get out of filing.

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Judson M. Carusone, Attorney and Counselor at Law
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Eugene, OR 97401

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