Depression Takes Hold of Bankrupt Debtor

Jan 26

Depression Takes Hold of Bankrupt Debtor

This personal bankruptcy story was posted on the internet in December of 2009 as a comment in a discussion on bankruptcy: “Back in August of 2007, we came across a foreclosed condo in awful condition purchased it for $90,000 renovations [of $12k] were on creditI got pregnant, and we looked forward to starting our family in a home of our own. However, my sons delivery cost us over $4k with insurance in January of 2009, at 8 weeks old, my son developed RSV with bronchiolitis and had to be hospitalized for three days. It cost us $4k the hospital sent us to collections same for the physicians. In February 2009, my husband was laid off ..unemployment was only $275 per week, and we again had to put groceries and other necessities like pediatrician co-pays on credit. Then two things happenedour son had to go into daycare at $235 per week and every single one of our cards doubled or tripled their interest ratein August, I was laid off. Although we do not pay daycare as I am now home, we are running at a deficit of $1700 per month. We now have no more credit, and next week I get to sit down and figure out which bills go unpaid so that we can eat. I feel so hopeless Even with bankruptcy, we are still in the red”

The excerpts taken from this personal bankruptcy illustration offer a very depressing and hopeless picture for the woman who feels trapped by her financial condition. She eventually wonders if divorce will be part of the outcome and is willing to take depression medication in order to numb the pain. Financial difficulty, according to statistics, is one of the leading causes for divorce. So, it is not uncommon for those who go through financial problems to have mixed emotions that do not always focus on the problem at hand. The problems in life often seem to be overwhelming. With the economy in recession, the number of Americans filing for personal bankruptcy rose by nearly a third in 2009, a surge largely driven by foreclosures, credit card abuse, and job losses. Overall, personal bankruptcy filings hit 1.41 million last year, up 32% from 2008, according to the National Bankruptcy Research Center.

The debtor in our illustration shares that her and husband are going to file for bankruptcy but believes they will still be in debt. Both husband and wife will have student loans to repay that are substantial. So even with filing for bankruptcy protection, there are debts that will remain with you.

Nevertheless, here are some advantages bankruptcy protection might offer a bankrupt debtor:

• You can obtain an automatic stay which is applicable to all types of bankruptcy filings. That means the mere request for bankruptcy protection automatically stops and brings to a cessation certain lawsuits, foreclosures, utility shut-offs, evictions, repossessions, garnishments, attachments, and debt collection harassment.

• Filing might save your home.

• You can reschedule secured debts.

• You can receive protection for co-debtors.

• You can keep all non-exempt property.

• You can consolidate all your loans under one plan.

• All or part of your loans may be completely forgiven.

• You can extend certain tax obligations, student loans, or other such qualifying debts.

There is no easy way out of a bad financial situation. They can happen to anyone, and the way out of them amounts to a lot of hard work and determination to overcome. Maybe you have found yourself in a difficult financial situation, and you are considering bankruptcy as an option. If this is the case, you are going to need a bankruptcy lawyer to properly help you understand how the complex bankruptcy laws may apply in your situation. So, if you determine you are in need of relief from the stress associated with debt and you live in or around the metropolitan area of San Diego, California contact us today. We will help you find a bankruptcy attorney in your area that will help you with any questions you may have on bankruptcy law.

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