How many of us have lost income at one point or another? I bet we all have. Losing income is about as American as apple pie and baseball. How many plants have closed and gone over seas? How many times has an employer eliminated over time? How often have you changed careers and started over at lower pay? It’s call life, the humility of being alive.
And then you say, wait, why would this cause a person to file Chapter 7 Bankruptcy? Well, many times, these events, in and of themselves, would not. However, what comes next often does. For many of us, we service the amount of debt our income supports. If you take any of that income away we are screwed, right? So, if you already have a lot of debt and then lose income its bad news immediately.
But, if you have no debt, a loss of income can lead to a lot of debt. Why? Here is a common scenario. You lose a job but you have skills in demand and you think to yourself, ok it’s going to take some time to get myself new employment in my line of work. So, I am going to use my credit cards, to bridge myself until I get that new job and then I can repay it back. This is reasonable.
Just then, the economy sours, the recession hits and instead of hiring people with your skills, employers are letting them go in droves. Was your gamble a reasonable gamble? Sure, it was. Did it pay off this time? No- it did not. The humility of being alive.
When the time is right, or when you are ready, reach out to Minnesota’s nicest bankruptcy law firm at www.kainscott.com. You will be so happy you did!