There are a number of events that can lead to high levels of consumer debt. Experiencing a serious illness or injury is a prime example, and leads many individuals and families in California into scenarios in which unmanageable debt forces difficult decisions. Few families are adequately prepared for the rapid and drastic changes that accompany a serious medical issue, and struggle to find their footing.
California consumers who are facing overwhelming debt may be considering filing for bankruptcy. Personal bankruptcy offers consumers various forms of protection, which is available through Chapter 7 or Chapter 13 bankruptcy. By completing a means test, consumers will be able to determine the chapter of bankruptcy for which they qualify. If this sounds intimidating, consumers may find comfort in knowing that an experienced bankruptcy attorney can guide them through the means test and subsequent bankruptcy procedures.
The amount a consumer initially considered affordable for a mortgage payment may become unaffordable after some years. Circumstances constantly change and job loss, unexpected medical expenses or death in a family may have an adverse impact on a homeowner's financial stability. It was reported that 15 percent of homeowners are defaulting on their mortgage payments. Personal bankruptcy may prove to be a suitable remedy for some.
When California residents emerge from bankruptcy, the overwhelming feeling experienced is one of relief. The discharge process of personal bankruptcy leads to the elimination of many forms of consumer debt, leaving individuals free to rebuild their financial foundation from the ground up. This is also a time in which credit repair is a top priority for many. Unfortunately, there are cases in which some debts refuse to stay dead, and come back to wreak havoc for those who want nothing more than to move forward.