Inflation is increasing the price of everything, especially here in Hawaii, where everything is already at a premium. If you are sinking under the weight of your debt, bankruptcy may be an option to consider.

Are You Sinking?

Inflation is a hot topic these days. It is defined as a rise in prices, or, in other words, a loss of purchasing power. To put it bluntly, everything costs more from the groceries in your wagon to the gas in your car. If you are lucky, your income has risen in tandem with the cost of living, but more likely, you are feeling the weight of your bills. You are not alone if you are finding that the math isn’t adding up to cover the basics. Your electricity bill, your material costs, and your mortgage, lease or rent have increased significantly. If you were already living on the edge, you are probably sinking deeper into debt. It is easy to imagine yourself on an inflatable tube in a sea of financial obligations. The trouble is that the tube has sprung a leak. You keep pumping more and more air into it, but no matter how hard you work, the tube is losing air faster than you can pump. You keep trying to patch leaks, but new ones break open faster than you can repair. You are sinking further and further into an ocean of unpaid bills.

Before the circling sharks can do what they do, it might be time to ditch the inflatable device you are clinging to and get a new one. Starting over is difficult, but sometimes it is the only way to keep afloat.

Is Bankruptcy An Option?

Bankruptcy is an option to consider when you are unable to meet your financial obligations. There are different kinds of bankruptcy and they each have implications, so it is best practice to consult with an experienced bankruptcy lawyer, like Rick or Lars at Abelmann Peterson Law.

Will I Lose My Home and Car?

A common concern when considering filing bankruptcy is whether or not you will lose your home or vehicle. You need a place to live, after all, and a way to get to work. It is important to understand the difference between secured and unsecured debt. A secured debt has collateral attached to it. Examples include a car loan or a mortgage. If you fall behind on your payments, the creditor has the option to foreclose on or repossess the collateral item. But not everyone knows that even if you file for bankruptcy, you might be able to keep your home or car if you continue to pay the debt.

On the other hand, unsecured debt has no collateral. Common examples are credit card debt and medical bills. As always when filing bankruptcy, seek the advice of a qualified attorney who can advise you on the proper bankruptcy filing for your situation.

What Happens Next?

The typical result of bankruptcy is either debt forgiveness or a repayment schedule. It might feel like drowning, but in reality, filing for bankruptcy can be an opportunity to stay on the surface. With a clear financial picture, you can be buoyed up even in these difficult economic times.