Every generation has its own series of hurdles to jump. For California baby boomers, one of the biggest current hurdles seems to be too much debt, and not many people can get past it. Boomers are filing for Chapter 7 and Chapter 13 bankruptcy at the highest rate in five years, and there may not be much that anyone can do about the situation.
The American dream usually involves putting some money away, creating a secure financial base and even buying a home. However, that dream feels out of reach for a large number of millennials in California. Struggling under significant amounts of debt while dealing with the affordability crisis, even the wealthiest individuals in this generation believe that getting out of debt is simply impossible. However, they may not have considered whether Chapter 13 bankruptcy could help their situations.
The lingering effects of the Great Recession are still impacting individuals across California. Following the end of the mortgage and housing crisis, many consumers had little choice but to borrow money. As consumer debt continues to grow, some people might need to consider the potential benefits of filing for Chapter 13 bankruptcy.
Avoiding credit card debt might seem like a good idea, but doing so can actually be fairly difficult. From credit card offers in the mail, during checkout at popular retail stores and even in emails from an individual's banks, these rectangles of plastic seem to be everywhere. Unfortunately, credit card debt is also fairly common, which Chapter 13 bankruptcy can help address. However, just like how some California consumers might not even realize how many credit card offers they receive on a daily basis, others may not even know they have debt on their cards.
Chapter 7 bankruptcy is a popular option for people who are ready to discharge their debts and move forward with their lives. Unfortunately, not everyone qualifies for this process. Individuals must earn less than the median California income to file for Chapter 7, which leaves many people still in desperate need of debt relief. For these people, Chapter 13 bankruptcy can be an excellent option.
No one wants to end up in a situation where his or her finances feel out of control. Unfortunately, people in California and elsewhere often find themselves struggling with overwhelming debt. Try as they might, they commonly cannot get out from under these burdens on their own. Luckily, Chapter 13 bankruptcy can usually help those who qualify reach more stable financial ground.
For most people in California, earning a college degree is the first step on the path to a successful and rewarding career. Unfortunately for many, it is also the first step towards overwhelming debt. Although student loans usually cannot be discharged in Chapter 13 bankruptcy, the process can still provide vital debt relief that allows borrowers to better focus on their loan repayments.
Most people in California have a certain idea about the type of person who needs bankruptcy protection. The image of an individual who constantly spends well outside of his or her income usually comes to mind, even though this is far from the standard. In many instances, people find themselves in need of bankruptcy due to unexpected bills, financial emergencies or a sudden and unexpected loss in income. For rapper Lil' Kim, it was the latter that drove her to file for Chapter 13 bankruptcy.