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Coping with the financial fallout of a natural disaster

On Behalf of | Dec 4, 2017 | Bankruptcy

Texas residents who have been impacted by natural disasters may accumulate debt while trying to cope with the aftermath. As simply paying for food and a hotel room after fleeing from home can cost hundreds of dollars a day, the expenses could be tough to manage. Those who have accumulated debt in a disaster might want to talk to their creditors about special payment arrangements.

While not all creditors will be willing to work with a debtor, they may do so if that person is persistent. If a deal is worked out, a debtor should be clear about the terms of the deal and how it may impact his or her finances. Talking to a credit counselor may also be an effective tip for those who are looking for ways to pay down disaster debt. In some cases, Chapter 7 bankruptcy is an option for those who can’t pay debts in a reasonable amount of time.

A person may also qualify for financial and other aid after a disaster strikes. This could make it easier to pay down debt balances, which may have a positive impact on a person’s financial situation and credit score in the future.

While there are many potential options for those who are looking to pay down their debts, bankruptcy is often the best choice. It may allow an individual to either discharge debts immediately or have them reorganized. Those who don’t have many assets or disposable income might be able to have debts discharged while paying only a fraction of what they owe. It could also be possible to retain property after filing for protection from creditors.