Mortgages typically comprise the largest chunk of the average Florida household's debt. However, they are not necessarily the largest financial obstacle when it comes to repaying debt. Still, as other forms of debt mount, the possibility of falling behind on house payments may be a reality.
The bills show up in the mailbox every day and collectors call nonstop, but still some people delay filing for bankruptcy. Although Florida debtors might put off seeking debt relief for different reasons, the outcomes are sadly similar -- even higher amounts of debt as individuals face rising asset depletion. In many instances, delaying bankruptcy usually has far more negative impacts than filing usually does.
People who file for bankruptcy have several options when it comes to the house they are making mortgage payments on. In ideal cases, they could have been making regular house payments all along and not have even one late payment. Instead, it is credit card bills or medical bills that have gone unpaid.
Student loans are some of the most difficult debts to manage. The average Florida resident with a student loan may owe thousands or tens of thousands of dollars -- more than they could ever hope to repay, even with a good job they secured because of their degree. Even worse perhaps is the common knowledge that there is typically no debt relief from these loans during bankruptcy. However, things could be on the track to change.
Coming to the conclusion that debts have reached an unmanageable peak is devastating for the average Florida resident. Realizing that bankruptcy is necessary when that person is a veteran might be doubly so. Unlike certain benefits, veterans disability benefits are considered income in the means test, which can affect a veteran's ability to seek Chapter 7 bankruptcy protection.
Regardless of income, assets or career, virtually anyone can find themselves drowning under debt. For some people in Florida this may be difficult to believe, but whether its through the slow accumulation of smaller debts or a massive financial disaster, anyone can find themselves with more debt than they can repay. Popular rapper Lil' Kim recently made this point clear when she filed for Chapter 13 bankruptcy.
Some people in Florida accumulate debt through unexpected bills, emergencies or even through careless financial planning. Others, however, find themselves saddled with debt from the pursuit of a better life. Student loans recently reached a new high, and some experts believe that women may be most in need of debt relief.
No one in Florida goes into debt with the intention of taking on more than they can handle, but the future is unpredictable. Jobs do not last forever, medical emergencies can drain savings accounts and emergencies can take both a financial and emotional toll on debtors. Chapter 13 bankruptcy provides a path of partial debt repayment that also creates the opportunity for better financial footing.
A home is more than just a building -- it is a place where Florida families make memories, put up decorations to make their own and lay down roots for the future. Unfortunately, financial changes of any kind can threaten one's ability to keep a home. Mortgage modification may be an option for some homeowners struggling to keep up with their monthly payments.