When San Francisco residents become seriously ill, most place their trust in the hands of a doctor to help them get well. Unfortunately, the cost of medical care has become so high that these visits to the hospital are accompanied by seemingly-endless medical bills, which can leave the individual overwhelmed with medical debt.
It may surprise some to learn that the most common reason for filing for bankruptcy is illness. One new study indicated part of the problem is the high cost of drugs.
When San Francisco residents become buried deep in debt, it can seem like there are few options to eliminate debt. Some individuals may take out personal loans to try to pay off other debt, which only puts the person further into debt.
A natural question that comes up whenever someone files for bankruptcy is whether they have to repay these loans and other debt. The answer depends on the type of debt, and the type of bankruptcy a person files under.
For some California residents, the economic crisis that crippled the nation a few years ago may seem like it is finally coming to an end. For others, including many small business owners, the financial challenges continue and the search for debt solutions seems never ending.
Indeed, the economic crisis is far from over for small business owners, who are facing trouble in their commercial mortgages. Typically, banks re-evaluate their commercial mortgages every 5 to 10 years, when the loans can be renewed or the business owners asked to pay off the loan.
When San Francisco residents become engulfed in monthly bills, they think of many ideas to try to raise money and eliminate debt. Selling off certain assets, for example, may help provide some short term cash flow that can pay off a monthly bill. Yet, there are certain items that cannot or should not be sold off, such as a person's house, car or personal items.
Some may fear that, by filing for bankruptcy, they will be forced to give these items up and sell them off. This is often not the case, however, as bankruptcy law provides a number of exemptions for certain items of property that the person is allowed to keep.
One of the most respected professions for San Francisco residents' is that of physician. Bay area residents depend on their doctors for a high quality of care. Because of the important role physicians hold, they typically tend to be compensated well relative to other professions.
Yet, while it may surprise some, even physicians can struggle with personal finances if the conditions are right. These physicians may deal with filing for bankruptcy.
With the problems plaguing the economy over the past several years, many California residents have found it difficult to manage their monthly payments. Amid the mounting debt, any slight change in a person's life can throw his or her finances out of control.
One major change that can dramatically impact a person's financial situation is a divorce. Needless to say, by going from living on two incomes to one, it costs substantially more to live as a single person than with a spouse. Given the change, many individuals going through a divorce may find it beneficial to file for bankruptcy.
A familiar voice for many California residents is among those dealing with financial challenges. Dionne Warwick, the five-time Grammy winner who has sung numerous pop hits, recently filed for bankruptcy.
Warwick's Chapter 7 filing shows more than $10 million in tax debt, including $3 million owed to the state of California. She also has $500,000 in debt owed to a lawyer and business manager, and $20,000 in credit card debt.
When thinking of financial hardships, it is natural for California residents to imagine those who are not as well off as being the ones struggling to make it by. Yet, even those who have had immense financial success can find themselves struggling under the right conditions. For these individuals, Chapter 7 bankruptcy may be an effective option to obtain debt relief.
Perhaps the most troubling indicator of financial struggles is when someone cannot continue to pay their monthly mortgage payments. This may start the process of foreclosure, which can be devastating if one does not take the right steps, and ends up losing their home as a result.
When California homeowners fall behind on their mortgage payments, it can be scary not knowing whether they might lose their homes. For many, these fears become a reality after they are unable to obtain any assistance.
In fact, California homeowners have been dealing with a number of problems as compared to homeowners in other states. While home foreclosures rose from January to February nationwide, California had the same number of subprime ARM foreclosure starts as 35 other states combined. Given these troubling numbers, California homeowners may be wondering what they can do to stop foreclosure.
For some San Francisco residents, starting their own business is a lifelong dream that takes hard work and dedication to accomplish. Unfortunately, even for those who give their all, many businesses fail after tough economic conditions take hold. Under these circumstances, not only may a person need to file bankruptcy for their business, but for their personal financial situation as well.
For example, a founder of a brewing company recently filed bankruptcy for his business after financial troubles arose. The man then filed for Chapter 7 bankruptcy due to his struggles in his personal finances. The business bankruptcy listed assets of $51,525 as compared with more than $11 million in liabilities, while the man's personal bankruptcy listed assets of $3,236 with liabilities of more than $8.2 million.
Bankruptcy Center of John D. Raymond
2000 Van Ness Ave., Suite 205
San Francisco,
CA
94109
San Francisco Law Office
Phone: 415.992.7196
Toll Free: 888.554.1065
Fax: 415.351.1033
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