Everyone who has ever had a financial goal or dream never started with a plan to file for bankruptcy. But, unfortunate things happen – loss of a job, an illness in the family or divorce. All of these things can affect and impede your financial goals. The solution is to find the courage to face these problems and make a long-term plan on how you will recover from these unfortunate incidents.
Setting and Changing Goals
When a negative life event occurs, you cannot sit back and let it consume you and your resources. You must make a change to your financial plan, and sometimes that means you will not be able to pay off your credit card debt as you planned or pay off your student loans on time. You will find that you may need to reset your financial goals, which involves changing your priorities. This could mean paying your mortgage and your vehicle first before paying credit cards or student loans because you will need a place to live and transportation to get to and from your employment. This doesn’t mean failure. It means change: change to ensure you are paying for you and your family’s most immediate needs first. Resetting your financial goals and priorities is necessary and will continue to improve your financial future.
Consequences of Changing Goals
As a result of having to reprioritize your finances and set new goals due to events beyond your control, there will likely be repercussions – deciding between paying your credit card payments or your mortgage and vehicle payments may result in late payments on your credit report, collection calls, and ultimately, lawsuits and judgments against you. These are the consequences that must be dealt with, and one way to handle all of these is to file bankruptcy.
How Will Filing Bankruptcy Help
Filing bankruptcy can be a solution to the negative consequences of resetting your financial priorities. It can help you reorganize your debt to pay it off over a longer period of time or eliminate your unsecured debt entirely. It can help stop negative reporting on your credit report, stop collection calls and harassment, and end pending lawsuits or judgment enforcements. Bankruptcy is a financial tool that should be considered only when you are faced with limited options. Yes, it is an extreme resolution that in and of itself has negative consequences, but for many, it will allow them to get back on track to meet their financial goals and dreams, however they decide those will look.