Over the next three columns, we will address some common financial challenges many of us face in these different economic times. This first column will address some valuable community resources you can access before you have more serious financial challenges. The second and third columns will address how the two major forms of individual bankruptcy, so-called Chapter 7 (of the bankruptcy code) straight bankruptcies and so-called Chapter 13 Wage Earner plans, work. But if you seek out your options before you have more serious challenges, bankruptcy may be the best problem you never have.

 

One of the more helpful non-profit organizations in our community that assists citizens with financial issues is Financial Pathways of the Piedmont. This highly regarded agency is supported by our United Way and many other groups, as well. Their counselors are fully trained and certified about options, and you would be well served to contact the agency with your questions.

 

Many, if not most, of their initial sessions now are conducted by telephone or by virtual conferences, and often their initial conference fee is waived because of these challenging times. If you have questions, contact them.

Creditors have become increasingly flexible in harder times to help debtors work through their financial challenges. The 2008 economic downturn changed the attitude of many creditors. Many see that the creditor is better served if hard-working debtors are given some chances to get caught up, in part because bankruptcy rarely works well for creditors. And the involvement of a highly credible non-profit organization helps to validate that a debtor is serious about trying to get caught up on past-due debts.

 

A session with a reputable non-profit agency is strictly confidential. Neither your friends nor anyone else will know you are seeking a little direction.

Please know that you have more company in this credit-challenged boat in which you find yourself than you can imagine. Over the years, I have assisted medical doctors and other well-paid individuals who, for a variety of reasons, found themselves having trouble paying their bills on time.

Some of us find their financial status something they just do not want to talk about. They do not know where to start to sort out what they owe, to which companies, and how to begin to find a credible path forward that gets them through their financial challenge. You are not alone, trust me. The key is to get started.

Here are some next steps you can take Monday morning:

 

1. Call Financial Pathways of the Piedmont at 336-896-1191 and set up a confidential telephone/virtual appointment with one of their trained counselors. Their website is www.financialpaths.org, which contains links to helpful budgeting tools. You can also email the agency at info@financialpathways.org with confidential questions.

 

2. Ask the counselor to direct you to the link on the FPP website so you can start to get a total of your income/payments (money in) and a total of your regular living expenses (utilities, rent, motor-vehicle payment, etc.) and your credit card bills to be paid (money out). This will tell you quickly what your best options are.

 

Here is a helpful list of websites with information pertaining to other important programs that may affect your budget:

Remember: An informed choice is a smart choice.

 

This article was original written by Mike Wells and published by the Winston-Salem Journal. To read the full article visit the Winston-Salem Journal Online here.