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Richmond Virginia Bankruptcy Law Blog

How can you teach your children about money management?

If you are facing the unsettling reality that you are in serious debt and are considering bankruptcy, one of the first steps you should take is to identify which behaviors related to money management ultimately led you to this position. With a family to care for in Virginia, another concern of yours may be how to teach your children effective practices for managing their own money so you can help them avoid being in your position in their future. 

It is never too early to begin talking with your children about debt, budgeting, responsibly spending and planning for their future from a financial perspective. Additionally, with your example, your children can witness firsthand how to take care of their finances so they will not compromise stability and their ability to provide for their needs. 

Minimizing the impact of credit card debt on your finances

Personal debt is something that nearly everyone in Virginia will experience at one point or another. Significant purchases such as a vehicle or home are especially popular reasons for your needing to seek a loan. At Ferriswinder PLLC Attorneys at Law, we have helped many families navigate the complexities of debt and bankruptcy. 

Perhaps one of the most preventable, yet debilitating types of debt you may be experiencing is credit card debt. While convenient to use, relying on your credit card for all of your purchases and being lenient in how you approach paying back what you owe, can leave you sinking in an ever-growing mountain of debt. According to U.S. News, when you recognize the need to focus exclusively on paying down credit card debt, it can feel and be counterproductive to continue using your card. Instead, implement the use of a debit card or cash when you need to purchase anything. Once you are confident that your debt is paid down and you have your use of your card back under control, consider reintroducing its use slowly and infrequently. 

Keeping bankruptcy from causing permanent damage

The stigma that is tied to bankruptcy often makes the decision to file seem bleak and hopeless. In fact, many people in Virginia falsely believe that once they file for bankruptcy, it is impossible to recover and put that financial woe behind them. In reality, while bankruptcy can undoubtedly create some difficulties for a person's financial situation, it does not have to cause permanent damage if it is managed correctly. 

When people recognize that they are in a dire situation and are unable to repay their excessive debts, they may consider what their options are besides bankruptcy before they immediately resort to that decision. For example, they may be able to work with their creditors to renegotiate the terms of their contracts to allow some flexibility in repaying their loans. They may also consider asking family or friends to volunteer to pay certain debts until they can resume payments. When all efforts have been exhausted to avoid bankruptcy, people can rest confidently knowing that they gave their best effort before they made the decision to file. 

Breaking the news about a divorce with civility

While many divorcing couples in Virginia do their best to keep news of their split private, there will undoubtedly be those close to them who speculate about what is happening. Breaking the silence and explaining what has become of the relationship is something that can provide divorcing couples with protection from rumors and judgment, but should be carefully curated to avoid hindering the process. 

Couples who immediately tell their friends and family about what has happened and are detailed in their response may face the risk of oversharing. Giving away too much information can cause the people closest to them to form negative opinions about the other party which could create unnecessary drama and contention. Furthermore, couples who are bitter and spend their time tearing their soon-to-be-ex down could actually end up hurting themselves more in the long term. 

Understanding different types of debt

If you are one of the many consumers in Virginia who continues to struggle with a mound of debt that only seems to increase despite your best efforts to pay it off, you might have given thought to filing for bankruptcy. Before you make a final decision about a bankruptcy, you will need to know which type of plan could best suit your needs. One element that should be evaluated when making this decision is the amount and type of debt you carry.

As explained by The Motley Fool, there are two primary forms of consumer debt. One of these is called secured debt and the other is called unsecured debt. The difference between these two forms of debt is whether or not there is any type of collateral associated with the debt. If there is some asset tied to the debt, such as with a vehicle loan or a home mortgage, then the debt is determined to be secured. This means the lender has the potential to recoup some of the debt in the form of asset seizure if payments are not made.

New cars don't always come to you in perfect condition

If you are like most people, you likely associate new cars with luxury and safety. After all, when you buy a used vehicle, you are at the mercy of the previous driver's maintenance behaviors. Things they failed to do could impact the longevity and safety of your vehicle in the long term.

Buying a new vehicle, on the other hand, should mean that your vehicle is in pristine, undriven condition. Everything from the brakes to the sound system should be in perfect condition.

Divorce issues involving children and your financial future

Divorce can be a tough process for many different reasons, from struggling to adjust to daily life without a spouse to dealing with legal issues and anxiety over going to court. For some people, such as those who have kids or are worried about the financial impact of their divorce, this can be a particularly complex time. Moreover, it is important to realize how some divorce issues are related. For example, ending your marriage when you have children could lead to financial issues that need to be addressed in closer detail and there are many ways that your finances may be affected, especially if you have to pay child support or expect to receive these payments.

Aside from child support, you may be financially impacted by the outcome of a custody dispute. For example, if you will have sole custody of your child, you may need to prepare for some of the financial costs associated with raising kids. On the other hand, if you have to make child support payments, it is important to be prepared for these responsibilities, which can be very difficult if you are struggling with the loss of a job and other unexpected financial matters.

How can I rebuild my finances after chapter 7?

While filing for chapter 7 can help you get a handle on massive debt, your credit score will be negatively impacted. While bankruptcy typically stays on your credit report for ten years, there are steps you can take to begin immediately rebuilding your credit and restoring your finances. Nerdwallet offers some tips on credit repair post-bankruptcy. 

Create a budget

Can you achieve success after a bankruptcy?

When you have been struggling financially for some time, the thought of filing for bankruptcy in Virginia crosses your mind. You may be reluctant to do so because you are afraid of the lifelong ramifications of such a decision. However, you should know that filing for bankruptcy may actually help you restore your emotional and financial well-being and get you on the path to success. 

According to Forbes, some famous people who have achieved extraordinary success did so after filing for bankruptcy. This is because they took the action of stepping backwards and going through bankruptcy proceedings in order to be able to move forward thereafter. While this is not a decision that should be taken lightly, sometimes it is in your best financial interests to do so.

Medical bill woes: Balancing debt successfully

Medical bills are often unpredicted, building up as a result of an accident or sudden illness. Even with insurance, it's easy for Americans to fall thousands of dollars into debt. While a few thousand dollars of debt might not seem like much, it can be devastating when combined with an inability to work or other financial losses.

Medical care is expensive, and it's holding Americans back. The average consumer spends upwards of $10,000 on health care every year. Expenses vary based on the type of health insurance coverage you have, which is greatly determined by how much you can afford for premiums.

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