A: There are a number of our Bank On Hampton Roads participants that are either considering bankruptcy or recovering from bankruptcy when they begin so my message to you is that you are not alone. Bank On Hampton Roads can be helpful for the overall assessment of your financial situation and help you determine if you have any alternatives to bankruptcy. The Bank On lesson entitled “Crisis Mode” helps you to navigate through situations where income is not sufficient to pay your creditors. By having a plan in advance to prioritize payments and negotiate with creditors, you may be able to avoid a crisis situation altogether.
Bankruptcy may provide temporary relief at a
cost. Bank On Hampton Roads will help you develop the capability to break
the debt cycle and keep you from building more unnecessary debts. With
the help of your coach, you will examine the underlying causes of your debt, so
you know and understand how you ended up in your current financial hardship and
build a plan to prevent future problems.
There are a number of legal resources to help you
determine if bankruptcy can help you including legal aid if you are eligible
and the legal referral hotline (757) 623-0132 if you are not. If the debts are owed to government as in the
case of tax debts and student loans, they may not be eligible for inclusion in
bankruptcy. Another thing to consider is that not all bankruptcies will
eliminate your debts. Most offer a repayment plan that allows you to
repay the debt over time.
Posted by Gary Katz, Bank On Coach
