Although in many aspects the economy appears to be improving, financial blows from the recent recession can still have a very real impact on those struggling with finances. California residents who lost jobs or even homes through no fault of their own may find that they are facing a mountain of debt that that may be slowly scaling, with no end in sight. In some instances, filing for Chapter 13 bankruptcy can prove to be a more appropriate option than a complete liquidation of their assets.
Recent figures suggest that close to 33 percent of Americans are struggling with medical debt. In fact, well over half of all personal bankruptcy filings can be traced back to this type of debt. Even having health insurance isn't a guarantee that unpaid medical expenses won't be a burden to residents in California or anywhere else.
When facing extreme levels of debt, the pressure to take action can be overwhelming. California consumers know that struggling to make ends meet under a mountain of unmanageable debt is no way to live. Choosing the best path forward, however, can be a challenge. For some, debt settlement may seem like a good fit. Consumers must be sure to understand the full scope of debt settlement offers, as some programs can lead to even more dire financial circumstances.
In many cases, California consumers who file for bankruptcy are concerned about how that decision will impact their financial futures. Decreased credit scoring is one example of a negative consequence that will follow personal bankruptcy. However, taken in the perspective of the bigger picture, credit scoring is a short-term problem with a clear-cut solution.