Due to the debt problems caused by COVID-19, household debts such as car notes, mortgages, credit cards, and medical bills have been proving more difficult to repay. Therefore, Wisconsin residents are facing “insolvency” at a higher pace. We understand that “insolvent” is not a term that clients often use. However, because it may arise during a conversation with your bankruptcy attorney, it is helpful to understand.
#1 Insolvency is a financial term meaning that one is unable to pay back debts
#2 Insolvency terms can be related to both business & household/consumer debt
#3 There are many situations that have the potential to lead to this financial state
#4 Bankruptcy such as chapter 7 or chapter 13 are part of a legal process to address insolvency
Consumer insolvency is a debt problem, whereas consumer bankruptcy is a debt solution. A household that is bankrupt is also insolvent, but a household who is insolvent is not bankrupt, (unless they have filed for bankruptcy). If you have tried budgeting, talking to your creditors, and every other trick in the book, it may be time to consider bankruptcy. For those who qualify, bankruptcy may restructure, reduce, or eliminate debts completely. Read Wisconsin bankruptcy success stories.
One may be insolvent when the debt load exceeds the ability to pay back debts. This is an extremely stressful situation.
In recent times, especially with the challenges brought about by COVID-19, many individuals and families have faced unforeseen financial hardships. The pandemic has not only affected health but has also brought about significant financial strains due to COVID-related hardships. At Debt Advisors, we’ve closely monitored the impact of COVID-19 on bankruptcy laws and have tailored our services to address these unique challenges. Furthermore, we understand the intricate link between medical diagnoses and financial issues, ensuring that our clients receive comprehensive guidance during these trying times.
Debt Advisors Law Offices offers affordable and effective legal options to confront the problem head on. We have helped many insolvent households get out from under their debt, and we can help you as well. From Milwaukee to Green Bay and everywhere in-between, we are the experts to in debt elimination; voted best bankruptcy law firm since 2012. Request your free initial consultation, then learn more about us and our history of success with clients by visiting Why Debt Advisors?