One of the few things that people can expect consistently is the unexpected. One moment things are stable and the next they are in chaos. This may apply to situations involving family, friends, home life, work-life or just about anything else that can be shattering or life-altering in the blink of an eye. While losing a job may not be as catastrophic or tragic as losing a loved one, it still may have far-reaching and long-term effects on an individual and his or her family.
Consumers make purchases with the expectation or assumption that they will have the income or the money necessary to pay for these purchases in the future. We all live with the expectation that we will be gainfully employed and have the ability to earn the money necessary to pay our monthly living expenses. If anything, we like to think we’ll have some money left over after each month. The loss of employment represents the loss of income which is necessary to pay monthly expenses for items such as food, clothing, fuel, and even recreational activities.
Late fees, penalties, and interest start to accumulate once these monthly payments are missed with any regularity. It does not take long for unpaid bills to pile up and suddenly, even if a job is recouped or replaced soon after the initial layoff, it may be necessary to pay two or three months of monthly living expenses with only one month of income.
Bankruptcy is a viable option for anyone who is been temporarily or permanently laid off from employment. Especially when falling behind and becoming current on a mortgage seems insurmountable. Bankruptcy can fend off creditors and curtail their collection efforts, thus allowing the debtor to reorganize and or liquidate personal assets. Bankruptcy can help anyone who has lost their job deal effectively with any debts, both secured and unsecured.
Certain events may result from failing to pay both secured and unsecured debts. These include:
- harassment by creditors.
Bankruptcy will eliminate most, if not all, unpaid, unsecured debt when a primary source of income is lost. Bankruptcy allows a fresh start to anyone’s financial life, if not life as a whole. It stops the buildup of bad credit and creditor harassment. It stops repossessions, foreclosure, garnishments, judgments and all associated threats related to debt collection.
Talk to the Morrison Law Group about your Chapter 7 or Chapter 13 bankruptcy options. Call 801.456.9933 today to schedule a FREE consultation. We are Utah’s only statewide bankruptcy law firm and have locations in Ogden, Logan, Sandy, and St. George to serve the residents of the counties of Weber, Cache, Salt Lake, Utah, Morgan, Davis, Washington, and surrounding areas.