New parents may be very excited to welcome a child into the world, but they may also be going through a number of hardships, including financial strain. From pregnancy-related costs to job loss and other financial matters, there are many reasons why new parents may struggle with debt. In fact, some may have been in debt for years. Unfortunately, these financial hardships can cast a shadow over a time that should be very special and hopeful, and it is important for parents who are struggling with debt to have a clear idea of different options that may be open to them.
First, it is critical for parents to have a solid understanding of the different types of bankruptcy and compare these options with their personal circumstances. Some may decide to file for Chapter 11 bankruptcy, while others may benefit more from Chapter 13 or Chapter 7. It is also essential to move forward with bankruptcy in a timely manner and do everything to protect the financial future of the family. Raising a child can bring a number of financial demands, from buying groceries and moving into a bigger home to helping a child with college years down the road. It is vital to be prepared for these obligations and ensure that financial concerns are addressed.
Some people may need to postpone bankruptcy due to the birth of a child, which is understandable. However, parents who are buried in debt should not push bankruptcy off for too long, if such a move is in the best interests of their family.