When Filing Bankruptcy Is The Best Option As A Single Parent

As a single parent, the last thing on your mind is likely bankruptcy. Even if you feel like there is a stigma attached to filing bankruptcy, you should know that you never have to suffer needlessly with a mountain of debt. Bankruptcy can be beneficial to you if you are being bombarded by creditors and you truly need a fresh start in life with you and your child. Here are some reasons why you should meet with a bankruptcy lawyer to discuss your options related to your unpaid debt, especially if you are a single parent.

You're Unable To Pay Back Your Debt

When you meet with your bankruptcy attorney, be prepared to explain your entire financial situation. If you have more debt owed to creditors than what you can pay back, you'll likely qualify for bankruptcy. There are also other situations that you may be facing that your attorney will present in front of the bankruptcy judge and your creditors. This may include:

  • The loss of a job or spousal support
  • An illness leaving you unable to work
  • A reduction or cut in work hours or pay
  • An injury making it challenging to work full-time hours
  • Having to relocate due to a domestic violence situation

If your financial situation has changed recently, your attorney may find that you qualify for chapter 7 bankruptcy, allowing you to wipe out most of your past and present debt.  

You Want To Purchase A Home Or Vehicle In The Future

Hanging on to debt that has gone into collection can cause a lot of damage to your FICO score and your credit worthiness. Many old credit card debts can be renewed with a fresh default judgment from a court of law. This allows the cycle of debt to haunt you for not just months but many years. This will make it impossible to qualify for a home loan or finance a car in the future. Filing bankruptcy in most cases still stays on your credit report but your FICO score increases over time.

Collectors Have Threatened To Take Your Personal Property

If you've had a notice on your door that a creditor is after your property, it can be scary and life changing. In many states, creditors can collect your personal property to satisfy a judgment enforced by the court. They will likely be accompanied by a sheriff and then go through your home and seize property to later sell at auction. Filing for bankruptcy will stop this from happening and give you peace of mind for you and your child.

You've Had Your Wages Garnished

Receiving a notice from your employer that a credit card company is taking part of your paycheck can put a huge dent in your budget as a single parent. Filing for both chapter 7 or chapter 13 bankruptcy can prevent this from happening. Bankruptcy also prevents creditors from enforcing a judgment to seize money from your bank account and your income tax refund.

Being a single parent is challenging. Having debt pile up on top of day to day challenges adds unwanted concern. Speaking with a qualified chapter 7 and chapter 13 bankruptcy lawyer will help ease the stress and allow you to free yourself from crippling debt.

Share