After the holidays, Arkansas consumers may find their finances stretched, and some suggest immediate action may be necessary. Although the bankruptcy option is available, many people may want first to try stricter debt management before taking that step. However, ongoing credit card debt can result in additional interest and late payment fees.
Arkansas homeowners who are facing financial hardship may be exploring their options under the U.S. Bankruptcy Code. Although Chapter 7 bankruptcy is an option, Chapter 13 is more suitable when mortgages are involved. This option allows homeowners to reorganize their debt repayments by drafting a plan to schedule payments over a period of three to five years following the approval of the court. The home will be included in the plan, and as long as payments under the court-approved plan are kept current, the homeowner will not lose his or her home.
When a small business owner falls into financial turmoil, the matter can quickly escalate. For many in Arkansas, personal and business finances have become so entangled that problems in one realm can quickly lead to problems in the other. When it becomes clear that the business cannot survive, Chapter 7 bankruptcy offers a means of eliminating both personal and business debt.
It is not uncommon for consumers nationwide, and also here in Arkansas, to start their holiday shopping in November and spread it over the weeks leading up to the holidays. If purchases are not monitored during this time, the credit card bills in January can come as a shock. Those who find themselves unable to make the required payments may expose themselves to creditor harassment and threats of foreclosure, repossession and wage garnishments.
As the holidays approach, many in Arkansas are preparing for annual gift-giving. For those who are already in serious financial straits, however, holiday shopping can be more stressful than jolly. In some cases, individuals and families put off reviewing their full financial standing until the end of the year, as they try to determine how much to spend on gifts and celebrations. The outcome of those reviews may lead some to consider if bankruptcy may be the best way to ring in the New Year. The following tips are offered to those who would like to have a great holiday without incurring high levels of debt.