When a business is costing more than it brings in with profits, it's sometimes time to sell or to consider bankruptcy. By selling the property off, you can avoid staying in debt. With a bankruptcy, you may be able to sell for a lower price that is affordable to others while still eliminating any outstanding debts you owe.
February 11th is National Don't Cry Over Spilled Milk Day, and while it's likely one of those tongue-in-cheek holidays created to fill a fun calendar, we think the spirit of the day is perfect for anyone dealing with critical debt levels. It's so easy to get caught up in what you've already done wrong that you never turn around to figure out what you can do to fix the issue now and in the future.
Having more bills than you have money is a situation that isn't fun to be in. If this is your reality right now, it is time to take control of your finances so that you don't have to live with the struggle any longer than necessary. One option that you have is bankruptcy. Many people will scoff at the prospect of filing bankruptcy, but it is important to realize that this can be a very useful tool if you are truly trying to get your finances back on track.
A Chapter 7 bankruptcy might be your least-desired option, or it might be the answer you're looking for to get ahead financially. There are a few things that you have to know about this kind of bankruptcy, though, because it won't excuse you of everything you owe.
After the carefulness that consumers in Arkansas and elsewhere showed during and after the recession, they are starting to flex their spending muscles again with respect to the use of credit cards. Credit card debt is predicted to hit $1 trillion this year, which will be near the $1.02 trillion record set in 2008 at the beginning of the recession. Not only will carrying high debt balances have a negative impact on the consumer's credit score, but bankruptcy filings can be expected to rise in the near run.
It’s a scenario thousands of Americans can identify with. After the housing bubble burst in the late 2000s, home values plummeted. Homeowners found themselves owing more on their mortgages than their homes were worth. Many also had second or even third mortgages, all underwater.
For people who are toeing the edge of financial solvency, any infusion of money can be a blessing. Whether expected or unexpected, having new resources to draw on in order to pay credit card bills, mortgage payments and medical expenses can be a giant relief.