Overcoming debt problems caused by natural disasters
Florida residents who have been impacted by a natural disaster may experience a variety of emotions. They could also have to deal with the financial fallout from a hurricane, flood or earthquake. In some cases, disaster victims spend hundreds of dollars per day to pay for food, lodging and other needs while away from home. This can be on top of insurance deductibles and missed time at work.
Individuals who are impacted by a natural disaster could be eligible for financial and other types of aid. Grants and low-interest loans can help a person recover quickly without fully depleting their savings. Credit card companies may be understanding in situations when a person runs up a large debt because of disaster expenses. While it could take several attempts to get necessary relief, this money can ultimately help cover finances in a time of need.
Enrolling in debt management plans or applying for debt consolidation loans may help those who accumulate debt after a disaster. Typically, these strategies allow a debtor to lower the interest rate paid on debts. Filing for bankruptcy is one alternative for those who simply cannot afford to pay down their debt balances in a timely manner.
Some debtors could find financial relief by filing for bankruptcy. Bankruptcy provides the opportunity to eliminate unsecured debts such as credit card or medical debts that may arise after a natural disaster. An lawyer could explain what type of bankruptcy an individual might want to file for. In a Chapter 13 case, debts are generally reorganized and repaid over a period of three or five years. Remaining balances may be discharged after the repayment period runs out.