As an Asheville bankruptcy lawyer, I frequently speak to consumers about financial stress. Without a safety net, people fear that an unexpected car repair or medical problem will make it difficult to pay for household necessities which provide safety like housing, food, or utility bills.
This article in the Charlotte Observer explains that 66% of people in the United States would have trouble covering a $1,000 crisis.
Bankruptcy is a financial tool which can be used in order to help establish an emergency savings account. I frequently recommend that clients stop paying their credit card minimums each month, discharge the same debts in Chapter 7, and then deposit the exact same payments they had been making to the credit card companies into their own emergency savings account post-filing. With an emergency savings account established, a consumer no longer has to worry about an unexpected expense threatening their family’s safety.
This is only one example of how bankruptcy can be used to help a family’s financial situation. If you would like to hear about the best strategies for the specifics of your family’s situation, I’d be pleased to speak with you during a free, initial bankruptcy consultation. Call 828-232-4949 to get on our calendar.
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