How Big Of A Problem Is Debt For Individuals And Businesses In Iowa And The United States Today?
Debt is a significant problem in Iowa and the United States today. Unfortunately, it’s only worsening as issues develop in our economy. Because we are on the verge of a recession, many will likely be pushed over the brink of being unable to handle the debt they currently have.
What Type Of Debt Are Americans Saddled With Right Now?
The most consequential financial struggles Iowans and Americans are experiencing right now include the following:
- Medical debt
- Credit card debt
- Increased interest rates
Because of these types of debts and financial burdens, foreclosures and repossessions, among other unfortunate effects, are predicted to increase.
At What Point Do Individuals Generally Recognize The Viability Of Bankruptcy As An Option To Deal With Debt?
The point at which people decide that bankruptcy is a viable option to deal with debt differs from person to person. Some people have the foresight to see what is coming and act accordingly, while others decide to pursue bankruptcy on the eve of losing their house. It depends on when the individual concludes that they can’t stay above water anymore.
Should A Certain Amount Of Debt Accrue Before Filing For Bankruptcy?
How much debt a person should have before filing for bankruptcy depends on the individual and how much money they’re making.
For example, an individual making $100,000 and having $10,000 of debt is not the same as a person making $30,000 with $10,000 of debt. The right time to file depends on your specific circumstances and life factors.
Is There A Certain Amount Of Debt Or Missed Payments That Would Cause Creditors To Garnish Wages?
There isn’t a specific amount of debt or missed payments that would cause creditors to garnish wages. Under Iowa law, a creditor can garnish your wages if they get a judgment against you and seek to collect. Though it is not always easy to get a judgment or sue in the State of Iowa, it is possible, and creditors will do everything they can legally to get themselves paid.
Will Filing A Bankruptcy Stop Any Creditor Harassment Or Wage Garnishments?
Under bankruptcy law, filing will stop harassment and any attempts to collect a debt. If any creditors do continue to harass you or try to collect debts from you, there are legal provisions to make them stop and punish them for doing so.
For more information on the Current Problem Of Debt In Iowa And The United States, an initial consultation is your next best step.