How Chapter 13 Can Help Single Parents
If you’re struggling with debt, here’s what you should know about Chapter 13 bankruptcy for single mothers (and single parents in general).
Being a single mother is one of the toughest jobs in the world. You’re responsible for providing for your children, keeping a roof over their heads, and making sure they have everything they need to thrive.
So when unexpected events or rising debt threaten to upend things even more, you need a solution, and quick. You might want to look into Chapter 13 bankruptcy.
Living on the Edge
Single parents face a serious financial disadvantage, but it’s especially hard on single mothers. According to a recent report:
- 30% of single mothers live below the poverty line. (By contrast, it’s only 17% of single fathers.)
- 1/3 of single moms wouldn’t be able to afford a $400 emergency expense.
- COVID caused a higher rate of unemployment for single mothers and forced them to exit the labor force more than single fathers and women without children.
- 97% of single mothers find the average cost of childcare per child unaffordable.
Without savings or the extra money to pay for childcare when needed, a small mishap could leave overwhelming debt, with no clear way out.
Foreclosure’s Impact on Single Parents
It’s extra important for single mothers to avoid foreclosure. Having and keeping a home can be crucial for the whole family’s financial stability and emotional well-being.
As a bankruptcy attorney, I’ve seen a lot of single mothers face the possibility of foreclosure. I usually recommend they prevent it with Chapter 13 if possible, for a few reasons:
- It saves you from losing the equity in your home.
- While both foreclosure and bankruptcy impact your credit score, it can be easier to rebuild when you’re out of debt.
- It can be traumatic for children to lose their home and the sense of stability that comes with it, including possibly losing their school and community.
So what is Chapter 13, and how can it work for you?
Chapter 13 as a Tool
Chapter 13 bankruptcy is a legal way to get out of debt. It allows you to make a plan with the courts to pay off your debts over time.
If you qualify for Chapter 13 as a single mother, you can use this plan to catch up on payments you missed—including car or house payments—and pay off other debts, like credit card or medical bills.
After finishing the payment plan, most of your remaining unsecured debts are forgiven. This plan helps you protect your most valuable things (like your home or car) from being taken away—and it can be a lifesaver for single moms.
Finding the Right Memphis Chapter 13 Lawyer as a Single Mother (or Father)
Over the years, our Memphis firm has helped thousands of people get out of debt, including countless single mothers. We’ve helped them build better, happier lives totally free of debt. Their success is a testament to the power of perseverance and the importance of seeking help when you need it.
If you’re facing foreclosure, know that you’re not alone. A lot of other folks have been in the same position, and you have a team of people here who are ready and able to help.
To support you, we’ve created a series of free reports about bankruptcy, including what to expect and how to rebuild afterward. Our award-winning team is known all over the Mid-South for our compassion and responsiveness. And we offer a free consultation to help you figure out your options.
Bankruptcy can be a valuable tool for those who need it. Don’t give up hope – there’s always a way forward.
To talk with someone about your situation, just give us a call today or fill out the form on this page. We look forward to helping you.