Submitted by Rachel R on Mon, 08/15/2016 - 10:18am
Bankruptcy filings down in Greensboro - is that good or bad?
Image Source: Flickr User TheTruthAbout
A new report shows that bankruptcies were down in Greensboro, North Carolina when you compare year to year, but only by a small margin. Final numbers are in for 2015 and, compared to 2014, there were 198 fewer bankruptcies filed last year. This sounds like good news, but is it really? Let’s consider.
Consumers May Be Unable to Afford to File Bankruptcy
When Greensboro, North Carolina consumers get deep in debt, they may feel they can't afford to file bankruptcy. Some law offices offer zero-down bankruptcy deals to make sure you can get the help you need, but consumers aren't always aware of this. Feeling so mired in debt that you can’t afford to pay your bills and also can’t afford to file bankruptcy to get out of the debt is a tough position to feel stuck in, but fortunatlely, there are solutions to help.
Consumers May be Unaware how Bankruptcy Can Help Them
Many people view bankruptcy as an option of last resort. But you may get better results from bankruptcy if you file sooner rather than waiting until things are totally desperate. Bankruptcy can be used strategically to target certain types of debt (credit cards, medical bills, etc.) or to buy time to catch up on past-due balances on secured debts like mortgages or auto loans. Bankruptcy can also help deal with back taxes in some cases.
Consumers May Not Understand how Bankruptcy Affects Their Credit Score
Some Greensboro, North Carolina consumers may believe that if they file bankruptcy, they will ruin their credit for good. That’s not true. Plus, if you’re deep in debt, maxed out on your credit cards, and paying bills late, your credit score will be dropping every month anyway. When you first file, your credit score will dip but the free fall from being over-indebted stops and then you can begin to rebuild your credit after filing bankruptcy.
Consumers May Not Understand the Peace of Mind Bankruptcy Offers
Being in debt can be depressing and nerve-wracking, particularly if you’re hounded by debt collectors. Many people that are deep in debt find that their health suffers, they may have sleepless nights, and their quality of life diminishes as their debt increases. Filing bankruptcy and having many of your debts discharged can be a chance to have peace of mind and a fresh start that they never expected to enjoy. This can be life-changing for many NC consumers.
Fewer Bankruptcies May Not Be a Sign of Improving Conditions
Fewer bankruptcies being filed doesn’t necessarily mean that there are fewer people who need debt relief – it just means that fewer are seeking debt solutions. Unemployment continues to be an issue in many areas of our state, and this inevitably means indebted consumers who can’t catch up on their bills but feel like they don’t have any way to correct their finances because they need to get a job first. There are myriad reasons why people don’t consider bankruptcy when they should.
If you’re deep in debt, living paycheck to paycheck, unable to save money, and struggling financially, why not call the Law Offices of John T. Orcutt to find out if bankruptcy is a good solution for you? We’ll explain the pros and cons based on your particular financial circumstances. Call +1-919-646-2654 now for a free Greensboro, North Carolina bankruptcy consultation at one of our offices in Raleigh, Durham, Fayetteville, Wilson, Greensboro, Garner or Wilmington.
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