The North Carolina Bankruptcy Information Blog

One of the big myths in the minds of people who are in debt and happen to be married is that bankruptcy leads to divorce. Yes, along with medical bills and job loss, divorce can be considered a leading contributor to bankruptcy, since it can put one or both ex-partners in a significantly more fragile economic position, and ultimately lead to a perilous situation that can be remedied no other way. That situation can happen after a divorce, but the idea that an otherwise happily married couple that files bankruptcy will inevitably land in divorce court is just false.

There is absolutely no doubt that financial problems put stress on a marriage.…

If you’re one of the many people right now struggling with unmanageable debts and planning to seek bankruptcy protection to regain control of your life, now is the time to take a close and honest look at your finances – the money coming in, the money going out, what you own, and what you owe. This is useful for a number of reasons. First, it will force you to gather information you’ll need to provide your attorney in connection with your filing. Second, it will force you to closely evaluate your spending habits. This, in turn, will help you prepare for a financially stable life during and after bankruptcy, because you’ll inevitably end up crafting a more affordable budget for yourself.…

So you’ve got a pile of bills and not enough money to pay them. This has been going on for some time now and you’re getting further and further behind on your payments: 30 days on some, 90 days on others, and even six months on a few. So what can you do? You could just do nothing. Maybe you’ll finally hit the jackpot this month with your “Cash 5” lotto ticket and you’ll be able to pay off all your debts. If you don’t happen to run into a pot of gold, you could turn off your phone, ignore the late notices, and hope your creditors will just give up after enough time goes by.…

Credit is undoubtedly a powerful tool. In fact, it is in most cases vital to make some of the most significant purchases and investments you need and want to make in life, such as buying a car or a home. Using credit for your every-day purchases can also be beneficial, because you can hold on to more of your monthly cash flow and take advantage of “rewards” programs and other incentives credit card companies offer.

While the potential value of credit is indisputable, it can become a trap for the unwary. Overuse or misuse can have serious, long-term consequences. To assess whether you’re headed down a potentially dangerous path in your use of credit, it is helpful to consider your actual purchasing activity and the way you view that activity.…