When men and women file a claim for disability benefits, they have to provide evidence of the condition causing their disability. In contrast, when someone files for chapter 13 bankruptcy in Montgomery AL, there is nothing to prove other than the inability to pay their debt. There are many reasons this happens.
Examples of Reasons for Bankruptcy
The reason these individuals acquired so much debt is unimportant unless they apparently did so with the intention of declaring bankruptcy afterward. That would be viewed as fraud. Some people file for chapter 13 bankruptcy in Montgomery, AL because they had a medical issue that disrupted their lives. Others lost a job and ran up credit card balances to stay current on bills.
Bipolar Mania and Bankruptcy
In some instances, a mental health problem resulted in bankruptcy. The manic phase of bipolar disorder, for example, is connected with impulsive and extravagant spending on purchases and experiences. In addition, people in the manic phase may spend huge amounts of money gambling. Once they get their illness under control with the help of a psychiatrist and the right medication, they may be ready to get their finances under control as well.
Income Requirements
A person must have enough steady income to participate in the payment arrangement that Chapter 13 creates. That income must be high enough to cover current expenses while also making the monthly payment to the bankruptcy trustee. The trustee distributes that payment to the various creditors.
An individual with uncontrolled bipolar disorder may not have a problem with income but, instead, may not be able to control their spending. This person may often function in a low-level state of mania known as hypomania. This does not interfere with normal functioning and may, in fact, increase productivity because of the person’s high energy.
Beginning the Program
A manic episode can derail all the positive financial practices, though. It’s critical to be effectively managing the illness before beginning a Chapter 13 program. The payment arrangement can be set up to last anywhere from three to five years. A person who feels ready to begin may start by Visit the website
