When serious financial strain sets in, many California consumers will do virtually anything to avoid filing bankruptcy. There are a number of misbeliefs surrounding the personal bankruptcy process, and many believe that filing should be the last debt relief option considered. In reality, personal bankruptcy is tool used by many to shed high levels of debt and regain financial stability, and not the financial death blow that some people imagine it to be. However, for those who would like to try to pay down their debt on their own, the following tips are offered.
Most California residents who are going through difficult financial circumstances know that bankruptcy is an option that is available to them. Many, however, hold a range of misconceptions about the process of personal bankruptcy. These myths can make it difficult for individuals to make the best possible financial decisions, and can serve to trap them in an untenable financial situation for far longer than is necessary. It is important to work through the facts and the fiction surrounding bankruptcy.
Many California readers may have forgotten the details of the government mortgage modification program known as HAMP. The Home Affordable Modification Program was rolled out nearly five years ago in an attempt to aid struggling homeowners who were in need of debt reorganization. As the program nears the five-year mark, however, many who signed up will once again be at risk of losing their homes.
As many Americans sign on for health insurance through the Affordable Care Act (ACA,) individuals and families in California hope that the changes in the availability and affordability of health care coverage will help control the cost of medical care. For many who are in the midst of financial hardship, medical debt is a primary cause of their current lack of financial stability. While the ACA will not have an effect on existing medical debt, the initiative could help reduce the cost of health care in the years to come, and may even help many avoid personal bankruptcy.