Hit Rock Bottom? How to Know When to File for Bankruptcy

If you have hit rock bottom and can’t seem to find a solution to your mounting debt, bankruptcy may be your best option. Many factors should be taken into consideration to determine if filing for bankruptcy is the right choice and whether or not you qualify. Here are some reasons why bankruptcy may be right for you.

Protection of Assets

Some of your assets could get seized if you aren’t able to repay the money that you owe, and filing for bankruptcy can resolve this problem. If you’re able to declare bankruptcy, you’ll likely be absolved of most or all of your debt and will be able to keep at least some of your property. Bankruptcy can be an especially good option if you’re trying to protect assets such as your home, car and retirement fund.

Using Loans to Pay Bills

Taking out loans to pay bills will usually only result in acquiring more debt that will be even more difficult to pay off in the future. In addition to repaying the amount of each loan, interest fees and any late charges that might incur from failing to make payments on time can make money matters worse. 



Banks, credit card companies and other financial institutions that you borrowed money from to try to pay back debts could end up turning you into collections and putting you in more financial jeopardy. If taking out more loans seems like the only way to pay off existing bills, filing for bankruptcy should be considered.

Sued by Debt Collectors

If your debt has been turned over to collection agencies and you still can’t pay back the money, lawsuits could be brought against you. Many law firm services include bankruptcy consultations that can protect you from lawsuits and help you file for bankruptcy properly so that you can put an end to harassment from collectors.

Qualify for Chapter 13 Bankruptcy

Chapter 13 bankruptcy can be a great option if you still have a regular income and can repay all or part of the debt gradually through payments. In most cases, the repayment plan will last a duration of three to five years, which gives you more time to come up with the money without going deeper into financial ruin. Even if you’re self-employed or run an unincorporated business, you’ll still likely be eligible to file for bankruptcy under this chapter.

Bankruptcy is your legal right if you’re able to meet certain criteria. Even though this option isn’t desirable, filing for bankruptcy could be what you need to resolve your debt and get a fresh financial start.

How to Deal with Sudden Emergency Expenses During Retirement

Retirement is often portrayed in entertainment and the media as a stress-free time to relax and focus on things like touring the United States or your hobbies. Rarely do they also portray the fact that retirement isn’t always free from financial problems and worries. 

For one, despite meticulous planning, sudden unplanned expenses can hit retirees hard. If this has been the case for you, below are some ways you can deal with unexpected emergency expenses during retirement.

Emergency Expense Funds

During retirement, you tend to rely on things like your pension, 401k, annuity, or Social Security income to provide you with a monthly salary. While this is all well and good, certain sudden significant expenses may still pop up from time to time that takes you well beyond your monthly budget. 

Overall, it’s a good idea to always have an emergency fund you can draw from to pay off such emergency expenses. This will prevent you from having to go into debt. Discuss the possibility with your bank or investment manager.

Bail Bonds

One sudden expense that can happen during retirement is needing to pay for bail. Most often, this is bail for your children or even grandchildren. However, suddenly coming up with bail to get your loved one released from jail can be difficult. 



Overall, it may be best to contact a 24-hour bail bonds agent to obtain a short term loan. You can use something physical like a TV or an old car as collateral. Just make sure your loved one actually shows up for court.

Insurance Coverage

One of the reasons people purchase insurance coverage is to be covered in case they do face a sudden huge expense. Insurance is a wide-ranging industry. Almost anything can be insured, and nearly any event can be insured against. 

However, you can also waste a lot of your monthly income paying for insurance you don’t need. If you use insurance to protect against sudden expenses, make sure the possibility of such expenses occurring is relatively likely.

Stock Liquidation

While it’s important to invest when creating a portfolio to provide you and your spouse with retirement income, you don’t need to hang on to all of your investments forever. If you have a sudden emergency expense you can’t pay for with your monthly income, you may want to look into liquidating some of your stocks and investments to get the funds you need. It’s probably a better choice than taking on debt or selling physical assets you don’t want to part with.

Overall, just because you’re retired does not mean you need to stop planning for financial issues. Sudden emergency expenses can hit at any time. They can also be bigger than what you can afford in your monthly budget. Make sure you have options to deal with such expenses as they occur.

Settlement Advance: How to Pay Your Bills on Time

Claims that go through the legal system can take months or even years to be paid. To avoid that, many cases are settled through a mutual agreement of the plaintiff and the defendant, which cuts short the legal proceedings to save everyone time and money. 

However, even if you have been offered a settlement that you plan to take with the help of your attorney’s advice, it may take a while for the funds to be distributed to you after related expenses and fees are paid first. 

Here are some ways that you can keep a handle on your finances and bills while waiting for the settlement you’re due.

Use a Low-Interest Credit Card

Pay your bills that are coming due on a new or existing low-interest credit card. Some banks offer zero percent interest for up to twelve or eighteen months. If your credit score is high enough, you may be eligible for one of these offers that will cover your current expenses. You can then pay off the card when your settlement money is disbursed.

Apply for Lawsuit Funding

Lawsuit funding companies often pay legal fees and claim-related expenses in advance of receiving a settlement. You just fill out an application and explain why the loan is needed, and if approved, you will receive the funds quickly to get your bills under control. Ask your attorney about using lawsuit funding if your expenses are quickly mounting.

Borrow against Your Home Equity Credit Line

If you own a home that has acquired equity in value, you may be able to use a home equity credit line for your bills. Many lenders are more willing to approve loans that are needed for specific and uncommon circumstances, like legal expenses or claim-based costs, than for regular living expenses.

Ask Relatives for a Loan

Although some people prefer not to do business with family, others feel that relatives understand their circumstances and trust them to repay any funds that are advanced for necessary expenses. This is especially true when a known legal settlement is pending. 





Agreeing on specific terms such as the amount to be repaid and the time period in which repayment will occur can help to reassure the family lenders that the money will be returned in a timely manner.

Paying your bills when they come due is important to protect your credit rating. Consider these options when borrowing money ahead of receiving a legal settlement.

How You Can Buy a House Without Thousands in Your Savings Account

You may think that it isn’t possible to get a mortgage without a large down payment. The truth is that you may be able to get a mortgage with no down payment at all depending on what type of loan product you use. Let’s look at how you can become a homeowner even if you don’t have a lot of cash in the bank.

Look for Loans Insured By the Government

The Federal Housing Administration (FHA) offers loans with a down payment of 3.5%, and the down payment can be gifted by a friend, parent or colleague. Those who are willing to live in a suburban or rural area may be eligible for a USDA loan that comes with no down payment requirement. 

It is worth noting that you will need to pay private mortgage insurance if you make a down payment of less than 20%.

Do You Have Good Credit?

Lenders that offer conventional mortgage services may allow you to make a smaller down payment without having to pay private mortgage insurance. This is generally true if you have a credit score of at least 700 and a steady income. 





If you have a credit score between 640 and 699, it may be possible to be approved for a loan with a down payment of less than 20% if you have significant assets.

Seek a Down Payment Loan

Lenders may allow you to take out what is referred to as a piggyback loan. In such a scenario, you would take out one loan that covers the cost of the home. You would then take out another loan that would cover the cost of the down payment. 

The two loans are repaid simultaneously over the course of several years, and interest rates on piggyback loans are generally the same as interest rates on conventional home loans.

If you find yourself in a better financial situation at some point after closing on the property, you can refinance those loans into one traditional mortgage. In the meantime, you can accrue equity in your home that can be used as collateral for a future loan or other provide financial flexibility.

Buying a home can be a significant milestone in your life. It can provide you with a sense of stability that may be difficult to achieve when renting a home or apartment. If your mortgage comes with a fixed-rate, you will know exactly how much your housing payment is for next 10 to 30 years.