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.
What Is Insolvency?
#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 VS Bankruptcy
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.
How Do I Know If I am Insolvent?
One may be insolvent when the debt load exceeds the ability to pay back debts. This is an extremely stressful situation.
- Frequently confronted with overdraft & credit card interest/fees
- You & your family are contacted frequently- with increasing pressure & threats
- Cannot pay taxes – owe money to the IRS, banks, and/or creditors
- Borrowing money from Payday Loans or Credit Cards to pay debts
- Wages garnished, taxes withheld, foreclosure or repossession
- Fear along with feeling helpless; cannot seem to find a way out
Face Insolvency Head On
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?