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Balances on credit cards increasing slowly

While Hurricane Sandy thankfully spared Massachusetts from the brunt of its wrath, this state's neighbors still struggle to recover. In addition to the obvious difficulties of coping with loss an rebuilding, a disaster can leave a person in a serious financial crisis and struggling with debt.

Those in the public sector may not feel the financial pinch as much on account of overtime. However, a Chapter 7 bankruptcy may be the best option for other individuals. In particular, those who work in the tourism industry, such as hotels and restaurants, may have a difficult time continuing or finding other employment in damaged coastal regions.

Small business owners may also feel the effects of the storm. Some business owners who sustained significant damage will not have insurance to cover their losses. Even those with insurance might not get compensation for some of their damage. Further, for some business owners, having to close unexpectedly for an extended time will mean a period of no income but mounting bills. The inability to operate may make rebuilding a business next to impossible.

While some small businesses facing financial challenges may chose to file for a Chapter 11 business bankruptcy, for other business owners this will either not be an affordable option or will not lead to the best result. In some situations, a Chapter 7 or Chapter 13 bankruptcy may help a person bail his or her business out of financial hot water after an unexpected disaster.

People will probably not know the full extent of Hurricane Sandy's damage for many months; in the mean time, however, the public will have to be on the lookout for an increase in bankruptcy filing from those needing a fresh financial start after this storm.

Source: EIN News, "Will Hurricane Sandy increase bankruptcies? " Nov. 3, 2012

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