The New York Times recently ran an article about LaKeisha Tuggle, a single mother from Detroit who filed for Chapter 13 bankruptcy.
Tuggle lost her public relations job in 2008 when her employer laid off his entire staff. She was originally confident that she'd be able to find a new job quickly, but she found that was much easier said than done. She started out her unemployment with a couple thousand dollars in savings, a 401(k) plan, and a credit card with a $500 limit. Her parents also lived next door to her and knew they would help her if she needed it.
However, after a while without a job, things started to get hard. Her unemployment and savings ran out, so she started juggling loans, credit lines, tax refunds, and educational grants to keep her head above water. By September 2011, she had a foreclosure notice on her front door letting her know that her house would be auctioned off in a week because she was $20,000 behind on her house payments. This was a sad reality for a woman who, only six years earlier, had been featured in the Michigan Citizen Newspaper after buying a brand new bungalow in Mexicantown, an up-and-coming neighborhood; her story was under the headline "American Dream in Southwest Detroit."
Luckily for Tuggle, a little while before she received the foreclosure notice, she had gotten a new job as an enrollment officer at an alternative high school. She was also singing in a reggae band that earned her between $50 and $100 per show. That new, steady form of income made her eligible to file for Chapter 13 bankruptcy. She was able to consolidate her debt, reduce her monthly payments and stop the foreclosure on her home.
Overwhelming debt isn’t only a problem in Detroit. If you have been facing a crisis in your personal finances and you have a steady income, you may be eligible for debt relief. Call Hampton Roads Legal Services at 757-340-3100 for a free consultation with an experienced Virginia Beach bankruptcy attorney.