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Hawaii Bankruptcy From Poor Spending
Bankruptcy From Poor Spending
How Poor Spending Got You Here
Do you ever look at your budget and just don’t understand how it reached this point? Bills are piling up all around you and there is just no way they’re all going to be paid off. You have so many you can’t even figure out what is due and when anymore. You swipe your credit card at the grocery store and fear it will be rejected.
These are tell tale signs of someone that has allowed their budget to get out of control. It usually starts off hones enough. A missed credit card payment here, or spending outside your budget there to get that car you’ve always wanted, but it eventually snow balls. Eventually it snowballs to financial ruin.
Poor budgeting and spending is one of the leading causes of bankruptcy in the United States. Many of us are hard working people, but budgeting isn’t easy. Even when we think we have everything organized how we want it there is frequently something that gets in the way. Life is difficult to predict.
Unfortunately life can also be rather unforgiving. Small mistakes are not forgiven very easily. There are consequences for every action and when you can’t afford to pay for something that consequence is usually debt.
As debt from poor spending habits builds up it eventually reaches the situation listed above. Where it feels that there is no possible way to escape from that debt. When you are in this situation you may look to seek bankruptcy as an escape.
Bankruptcy May Be Your Second Chance
Life does not give second chances and as a result we’ve had to build them into our systems that we have created. One of the largest myths of bankruptcy is that it is an end to someone’s life. All of your possessions are taken away from you and you are kicked to curb with nothing but what’s in your pocket to survive on.
This is not true. In reality bankruptcy is an opportunity to see your debts erased and given a fresh start financially. When you file for bankruptcy you will have this happen instead:
- Freed from debts
- An opportunity to start over
- No more financial strife
This doesn’t mean that life is going to be easy and you will suffer no problems at all. Your life will still see many of the same challenges that you were facing before, but you will no longer have debts hanging over your head and controlling every decision in your life.
This of course doesn’t come without consequences of their own. When you go into bankruptcy there are going to be costs. What these costs are will largely depend on what kind of bankruptcy you had to file for.
Chapter 7 Bankruptcy
If you file for Chapter 7 bankruptcy then that typically means you have too much debt to possibly pay off in a reasonable amount of time. This is the most common form of bankruptcy out there and is where a lot of the misconceptions about bankruptcy come from.
When you file for Chapter 7 bankruptcy your assets will be liquidated so you can pay off the debts to your name. This usually results in losing items such as:
- Extra houses
- Extra cars
- Valuable property
You won’t lose everything however. Some of the times you keep when you are going through bankruptcy include:
- The equity in your home up to about $25,150 per person filing.
- Motor vehicles, up to a certain value.
- Reasonably necessary clothing.
- Necessary household goods and furnishings.
- Household appliances.
- Jewelry, up to a certain value.
- Tools of the debtor’s trade or profession, up to a certain value.
- Home equity (a portion.)
- A portion of unpaid but earned wages.
- Public benefits, including public assistance (welfare), Social Security.
Once your assets have been liquidized and you have finished the bankruptcy process you will earn the opportunity to start over. No debts to your name and a chance to budget more properly.
Chapter 13 Bankruptcy
When filing for bankruptcy due to to poor spending you sometimes just need to have your finances restructured. When filing for Chapter 13 bankruptcy you are given the opportunity to actually pay off all of your debts.
Your debt will be rolled into a lump sum and then you can pay it off in lump sum payments. This option may help you lose less of your possessions in the bankruptcy process, but you need to qualify for Chapter 13.
To qualify for Chapter 13, a debtor must have:
- Regular income
- Unsecured debts of less than $419,275
- Secured debts of less than $1,257,850 (these dollar amounts are usually increased every three years according to a set formula).
At Blake Goodman we will be able to look at your financial situation and help you decide if you qualify for Chapter 13 bankruptcy, Chapter 7, or if you need bankruptcy at all. Schedule a consultation and we will discuss your situation together. The first consultation is FREE.
Are You Near Bankruptcy? Call Blake Goodman
If you think that you may be nearing bankruptcy then it may be time to call Blake Goodman. His firm can assist you during a time where you need help the most. If you’re worried that speaking with a lawyer will push you further into debt then don’t be. Consultations are free.
You can best contact our firm by using our phone number 808-528-4274. We are always willing to help our clients get through tough times like bankruptcy. Do not let the loss of a job ruin your life and take you further into debt. Call Blake Goodman today. Bankruptcy may save you.
Not On This Island? Come See Our Other Offices!
At Blake Goodman, we have offices in not just Oahu, but on Maui as well. We strive to serve the entirety of Hawaii to our best and full ability so there is nobody that is left out of the opportunity to pursue help in their life.
If you are in need of bankruptcy assistance in Maui then check out the website for our Maui offices at DebtfreeMaui.com. We will continue to provide the best services possible to you no matter the location.