What Defines Our Life

Have you considered Chapter 7 as a realistic alternative to repaying your debt? You’re not alone. Many people struggle with debt “seriously” at least once in their lives. There could be many causes for why debt becomes such a serious issue in one’s life. External factors including student debt, medical expenses, job loss and so on can often lead to debt problems later in life, especially if the debt was too large to service in the first place.

And what about the emotional aspects about this debt that nobody really talks about? The feelings you experience when dealing with serious debt are normal too, feelings like depression, anger, agitation among others are very natural. When people are placed in situations beyond their control, they will experience these kinds of feelings.

But is Chapter 7 the best way to deal with your debt problems? Consider that even after Chapter 7 you will experience similar frustrations, depression, anger and confusion. However, this should not stop you if the following apply to you:

1. You are unable to make your bill payments on time or at all. If you cannot make your bill payments without sacrificing life’s necessities such a rent payment or putting food on your table, then you are a likely candidate for Chapter 7 bankruptcy.

2. You are more than 90 days in arrears with your creditors and you do not have the means to repay these arrears within the next 180 days. As you know, when your payments are in arrears, you must repay all of your arrears as if they were “current” payments due. If you will not have the means to repay all of these arrears (combined with the arrears on other credit products) within the next 6 months, then you should strongly consider Chapter 7.

3. You have very little or do not have any income at all and do not see your income prospects improving or changing within the next three months. If you have no income today and you are already in arrears (or you will be by month’s end) then repaying your debt is simply impossible unless you have enough of a savings base that you can repay all of your debt and support yourself and your family for the next 12 months, then you should file Chapter 7.

Chapter 7 might not remedy the emotional side effects of heavy debt. It might not provide an overnight solution when it comes to fixing your finances. However, it will alleviate the financial pressure that will otherwise never find the release it needs in order for you to survive physically and psychologically. In other words, while Chapter 7 bankruptcy should never be enter into lightly, it is an available option that serves a true and definite purpose: to help you put an end to the financial suffering you endure as a result of heavy debt that cannot be repaid.

Chris has more than 16 years of experience in the financial services industry, having helped thousands of clients fix their personal finances. He is the editor of the online debt journal, DebtConsolidationOpinions.com, a website that caters to people who need Debt Help. As well, he maintains a website about one of the best bargain-memory cards on the market today, the Memory Card 1GB at MemoryCard1GB.com.

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