Many Minneapolis residents may struggle with their money matters from time to time. In some cases, an unexpected expense could throw a carefully crafted budget off track, but some individuals are able to adjust their budget to get back to financial stability. Unfortunately, you and many others may not be so lucky.
It is all too easy for a sudden unexpected expense or other serious finance-related hardship to hit and throw your funds completely off. Try as you might, getting your financial affairs back in order may not be as easy as simply adjusting your budget, spending less or moving money around. In fact, you may find yourself facing serious debt problems that could have almost immediate repercussions on your well-being.
What are some negative effects your debt issues could cause?
Many people get the wrong idea about debt or financial difficulties and often assume that a person spends too much or is just not good with money. That is commonly not the case as a medical emergency, job loss, death in the family or other serious life event could easily cause financial hardship. You may know this better than others and could be struggling the any of the following effects your debt may be causing:
- Foreclosure
- Having your power or other utilities disconnected
- Eviction
- Wage garnishment
These and other issues could make it impossible for you to go even a single day without thinking about your debt. However, you may have legal options that could help you address your outstanding liabilities and put some of these more immediate financial threats on hold.
Filing for bankruptcy
Depending on your exact circumstances, bankruptcy could be a debt relief option worth considering. In addition to helping you work toward a more stable financial future, it could also bring a temporary halt to some troubling creditor actions you may be facing, including those mentioned above. After filing for bankruptcy, an automatic stay goes into effect that can put foreclosure, eviction, wage garnishment and certain other creditor actions on hold. While this will not get rid of your debt, it could allow you to have some breathing room.
Though bankruptcy can certainly have a stigma attached to it, that negativity often comes from individuals who do not have all the information about how bankruptcy could help those who are struggling. If you would like to become more knowledgeable on this debt relief option and determine whether it could help you, utilizing local legal resources for reliable information may be wise.