5 Reasons for Chapter 13 Attorney

There has been an upsurge in individuals contacting a Chapter 13 attorney in order to restructure their lives. We live in an uncertain financial time with economic challenges not seen since the Great Depression. Many older citizens who lived through that earlier downturn are quite adept at being frugal and dealing with financial sourness and therefore less in need of a Chapter 13 attorney. For younger Americans, this drop in property values and rampant job scarcity has come at a great surprise. For decades, it seemed that houses always increased in value and hard workers were always rewarded with ample employment opportunities. Those expectations have been turned on their ear in the last several years for many reasons including these five:

1) Housing bubble: During the last decade, house prices rose in unheard of leaps and bounds. People felt rich as they saw their home become more and more valuable – on paper. Some sold and bought larger homes. Mortgage brokers came up with a variety of creative financing methods in order to get anybody and everybody into any home of their dreams. It seemed the party would never end and the whole country was doing the get-rich-quick mambo. This delightful bubble grew until it could no longer sustain itself, since it was built with smoke and mirror illusions. Suddenly individuals, companies, banks and municipalities became strapped for cash and it all came crashing down leaving the majority of the country untouched by economic hardships.

2) Unemployment: Many restaurants, shops and businesses closed their doors due to the lack of money now flowing from the pocketbooks of citizens. Gone were home equity lines of credit since few people had any equity left. Discretionary money for restaurant meals and new clothes dried up, leaving shops, businesses and restaurants without the need for employees.

3) Underemployment: Many individuals who are working have accepted jobs in positions beneath their capabilities and education level. When companies close, degreed workers who held lofty, well paid positions often end up in lesser positions. How many fast food workers hold college degrees? More than one might imagine.

4) Health care crisis: In order to cut costs, many businesses no longer offer health care benefits. There was a time when every large company gave its employees medical and dental coverage. In order to stay in the black, many corporations have slashed or eliminated healthcare benefits. Many of these profit driven companies aren’t bad guys; they’re merely trying to keep their doors open. But without insurance, one illness or accident can wipe a family or individual out financially.

5) Credit card debt: With gasoline, utilities and food prices shooting through the roof, many individuals have to stretch their budgets with plastic. Unfortunately, relying on credit cards for living expenses becomes a noose to hang yourself with. If a person doesn’t have the money to pay for expenses one month, he or she will be in worse shape the following month when interest is added to the plastic card’s tab.

Many hardworking citizens are finding themselves in dire financial situations due to the housing crisis, unemployment, underemployment, lack of healthcare benefits and escalating credit card debt. Calling in a Chapter 13 attorney to restructure debt payments can be a way to dig out. With the guidance of your Chapter 13 attorney, you can regain control of your finances and put your mind at ease again.