Addictions Can Lead to Bankruptcy
For the families of someone who struggles with an addiction, there are many challenges. One that sometimes doesn’t get the attention it deserves centers on the debt that is related to addictions.
The Challenge
One of the biggest problems associated with the one-two-punch of addiction and debt is that families often don’t realize either issue is a problem until they are very serious. Even if a person would dearly love to escape their addiction, they may find themselves spending every cent they have to fuel it, which means they drain savings accounts, squander paychecks, and get behind on mortgage and other payments as they quietly charge more and more on their credit cards, maxing out one card after another. It sometimes turns into the addict turning to payday loans or pawning personal items, all in an attempt to hide the problems from loved ones. As things become more dire, addicts may find themselves involved in criminal endeavors to come up with money, including stealing from their own families. Tragically, the addiction becomes overpowering, and that can only lead to destruction—in more ways than one.
Types of Addictions That May Lead to Debt
- Gambling addictions, shopping addictions, substance abuse and alcoholism tend to lead to financial woes more frequently than other types of addictions.
- Gamblers keep spending, hooked on the idea that their luck is just about to hit.
- Shoppers find they can’t say no to “just one more great deal.”
- Substance abuse and alcoholism can lead to personality changes that impact family, work, and finances.
Addressing the Problems When You Discover What’s Been Happening
What can you do if you discover that your family finances are in the toilet due to a loved one’s addiction? Suggestions include:
- Address the addiction right off the bat by getting professional help.
- Stop using credit cards.
- Freeze credit reports so your loved one cannot open any new credit cards or loans.
Consider Bankruptcy
Depending on the severity of the problem, you may want to consider filing for bankruptcy. The experienced, local bankruptcy attorneys at The Law office of Julia Kefalinos can explain the types of bankruptcies and help you make a decision that will best address your situation. Getting out from under crushing debt is not necessarily a fast or pain-free process, but it is definitely possible, and can quickly eliminate the pressures you feel from hungry creditors. This is the path taken by up to a quarter of families who have a family member suffering from pathological gambling. There is limited data on the connection between substance abuse and bankruptcy, but, with over 100 million Americans suffering from substance abuse disorders, it’s clear that financial ruin has landed on many, and bankruptcy is one very positive method of starting over.
Looking Forward
For a frank, clear-eyed view of your bankruptcy options, trust the dedicated Miami bankruptcy attorneys at The Law Office of Julia Kefalinos. Schedule a confidential consultation in our Miami office today.
Source:
moneyfit.org/dealing-with-addiction-related-debt/
