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Wisconsin Bankruptcy Law Blog

Considerable debt can negatively affect mental health

Anyone can end up in a difficult financial spot. Some may think that the issue is only temporary and that they will get back on track next month or after their next paycheck. Unfortunately, some people may find their financial problems starting out small and growing into a seemingly insurmountable issue.

You may be one of the many people in Wisconsin and across the country who is struggling with considerable debt. Your problems may have started out small, or you may have faced a sudden event like a medical emergency or job loss that placed an unexpected but significant financial burden on you. Whatever the case, it is likely that your debt issues are taking a toll on your emotional and mental health.

Business having financial problems? Don't panic.

As one of many Wisconsin business owners, you're likely no stranger to economic challenges. Perhaps you've had some fiscal years that were better than others. As long as you can pay your employees and keep business rolling as usual, you're confident that things will turn out okay. However, if you've missed a few mortgage payments or had to stop taking a salary to meet your overhead costs, it might be a sign of serious financial crisis.

Knowing where to seek support is just as important as knowing the signs that a business is headed for trouble. The fact is, if you recognize a problem but have no idea what to do or where to turn for help to resolve it, knowing about the problem doesn't do much good.

Are you worried that bankruptcy will damage your credit?

Filing for bankruptcy is a major decision. Many Wisconsin residents may struggle with overwhelming debt for years before deciding that taking this step could be right for them. If you are currently in this type of predicament, you may want to consider why you feel hesitant about moving forward with this debt relief method.

If you are like many others, you may worry that your credit report and score will be irreversibly damaged by bankruptcy. As a result, you may think that it is better to continue struggling rather than risk the damage of bankruptcy. However, it is likely that your current approach is already causing damage to your credit. Plus, the negative effects of bankruptcy do not have to be permanent.

Which debts reduce your satisfaction with life?

Throughout the phases of your life, you may have dealt with different kinds of stress. You have pressure at work and struggles with your family, and any of these can affect your quality of life.

How does your debt affect your quality of life? For some, debt can make life dark and miserable while others pay their bills and enjoy their situations. You may be surprised to learn that not all debt causes stress for most people. Other types of debt, however, can be a tremendous burden.

Why are so many people in Wisconsin in debt?

Perhaps you grew up in a household where it was taboo to discuss finances. Maybe your parents told you it isn't polite to tell people how much income you earn or to talk about debt. However, many people in Wisconsin have learned that it can not only be helpful to talk to others about their finances but may also be a key factor in obtaining much-needed debt relief and laying the groundwork to restore financial stability down the line.

If you're currently struggling with serious financial debt, you're definitely not alone in your struggle. Many Wisconsin residents can relate to your situation. Even if you have a savings account, an unexpected financial emergency can quickly throw your finances off track. That's why it pays to learn about debt relief programs, such as bankruptcy, ahead of time.

Does a statute of limitations mean your debt goes away?

Having a substantial amount of debt looming over you can put a damper on any situation. You may have the ability to forget about your outstanding balances for a time, but they likely jump to the forefront of your mind when it comes to making a purchase, especially on something that is not strictly necessary.

What you may not know, however, is that there are statutes of limitations on the amount of time a creditor has to take you to court in attempts to collect a debt. After that time frame has closed, the creditor cannot take you to court to receive payment. However, it is also important to know that you could reset the statute of limitations, even unintentionally.

Patience is a virtue for post-bankruptcy home equity loans

Bankruptcy provides you with numerous benefits, such as relief from creditor calls, time to reorganize your finances and relief from certain debts eligible for discharge. On the other hand, some temporary setbacks also occur.

Your credit rating will take a hit, but overall, it's better than a continuous downward spiral that tends to happen when debts are overwhelming and go unpaid. Lenders and other creditors may be gun shy about extending you credit or lending you money for quite some time. For instance, if you want a home equity loan post-bankruptcy, you could find it challenging, but not impossible, to receive one.

Bankruptcy has benefits, but do you still have concerns?

Being in debt is a confusing experience for most people. Is the debt good? Is the debt bad? Do you have too much or too little? For you, the last question may have an obvious answer because your outstanding balances have reached concerning levels. Now, you wonder whether you will be able to get back on track financially.

Unfortunately, overwhelming debt affects numerous people in Wisconsin and across the country. You may already be facing some of the more negative aspects of carrying debt, such as pending foreclosure on your home or wage garnishment. What can you do?

Wisconsin ranks high among best U.S. states

Whether you've been born and raised in Wisconsin or are new to this state, you likely do your best to be a productive member of your community. Perhaps yours is one of many households where both parents work full-time jobs outside the home to get by, or maybe your family has a long history in dairy farming, which is a main industry here.

No matter what your current employment background happens to be, you may have encountered financial challenges at some point, as most people do. You'll be glad to know that studies list Wisconsin as one of the best places to live in the United States. Living here, of course, is no guarantee that you'll never face a serious financial crisis, however. That's why it's always good to explore options for debt relief ahead of time, in case a problem arises and you need to act fast.

Laying the groundwork for a new financial future

Have you ever noticed that some projects turn out better if you scrap the original plan and use a creative alternative? Perhaps you initially thought you had everything you needed or had worked out all the details in your mind about how to execute a particular project from start to finish only to find that you'd run into some obstacles along the way that threatened a successful completion.

Coming up with a Plan B and not being afraid to ditch the first idea may be key factors toward bringing your project to fruition. The same can be said regarding other aspects of life, as well. For instance, if you're having financial trouble, it often helps to gain a whole new perspective, to interject a new idea or plan that helps resolve problem issues and paves the way toward a stronger financial future.

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