Over the course of a lifetime, many people may experience financial difficulties. Common issues include loss of employment, economic downturns, medical issues, and other incidents that stress one’s budget and cause monetary issues. It is important to remember that it is possible to rebound from crisis, and dedication and perseverance, many people rebuild their finances and emerge in an even better position than they were in previously.
If you find that you are having trouble paying bills and maintaining financial responsibility for your debts, you may seek ways of alleviating the burden. Some people turn to personal loans or cash-out equity in their homes to help pay down debt and gain financial freedom. Others may not have such options and may decide to “ride it out” until their monetary situation changes. People facing serious financial distress that cannot be solved by other means may turn to bankruptcy.
Bankruptcy may help individuals discharge debts that they cannot pay while protecting assets like their homes and vehicles. People who fail to quickly address serious financial issues may lose valuable assets like homes and cars to foreclosure and repossession, so it is important to take quick action to protect your assets in times of crisis.
Some people may choose to avoid bankruptcy by pursuing other ways of reducing their payments during times of strife. One method of avoiding foreclosure may be to write a letter to your bank or mortgage company explaining the situation and asking for temporary relief from the debt. Such letters are often referred to as “financial hardship letters”.
Financial hardship letters often require a detailed explanation of the difficulty you are currently facing and may include a schedule of repayment. The letter may suggest lower payment terms for a short while and often promises full-repayment and a return to normal prices once the individual finds financial stability.
There are several ways to go about submitting a financial hardship letter. Bank representatives may be able to help you formulate your proposal, while professional companies may also offer services crafting official letters. In some cases, you may be able to reduce your payments for a short period of time in order to straighten out your financial situation.
In the event that a hardship letter is rejected, people may have no choice but to file for bankruptcy to protect themselves and their families. If you are considering filing for bankruptcy, consult an experienced bankruptcy attorney for advice and assistance. If you would like more information regarding bankruptcy applications and hearings, visit the website of Austin bankruptcy attorneys Slater Kennon & Jameson, LLP.