Life Happens: When You Should Consider Filing for Bankruptcy
Despite the booming economy, many Americans remain in financially precarious situations. A single major life event could mean the difference between staying afloat and slipping underwater. While a majority of adults think that bankruptcy would never be a potential solution for their financial situation, it can be completely appropriate for many common life situations including divorce, the loss of a job or a serious medical condition.
Should You Consider Filing for Bankruptcy?
If you’re in debt and unable to afford the minimum payments or even think about paying off entire balances, it might be time to take a serious look at filing for bankruptcy. Instead of thinking of bankruptcy as waving the white flag and quitting, you should realize that bankruptcy is instead a clean slate and the first step on the path to your new financial beginning.
Any serious life event could leave you in a situation where you have debts you cannot afford to repay. A medical emergency or the loss of a job could quickly cause you to lean on credit cards to cover day-to-day expenses and lead to an insurmountable amount of debt. If you’re facing a financial landscape where trying to repair the past will rob you of your financial future, it’s time to consider filing for bankruptcy.
The Most Common Reasons for Filing for Bankruptcy
According to a prominent Harvard University study, over 60% of all bankruptcies filed in 2007 were due to medical debt. Over 90% of those filers were over $5,000 in debt due to medical expenses. The other most commonly cited reasons for filing for bankruptcy include:
- Loss of income
- Significant amounts of unsecured debt (like credit cards)
- Medical expenses
- Divorce
- Foreclosure
- Lawsuit
- Garnished wages in the aftermath of a trial
- Tax debt
Filing for bankruptcy doesn’t mean that you’ve failed. Instead, it means that you need to make some changes to improve your financial future, and bankruptcy can be the first step in making those changes. Over 700,000 Americans declare bankruptcy every year, and you are not alone in your situation.
How Can You Start the Process?
You’ll need to work with a skilled lawyer and legal team, like Steiner Law Group. We will help you determine which type of bankruptcy is appropriate for your financial situation, whether it is Chapter 7, Chapter 11 or Chapter 13. Next, we will walk with you through every step of the process, including taking an inventory of your assets, filing your petition, working with creditors and your bankruptcy trustee, arranging payments and discharging your debts.
Choose an Experienced Bankruptcy Attorney from Steiner Law Group
Steiner Law Group has years of experience working with business owners, entrepreneurs, professionals and families to safeguard assets and secure a better future. To learn more about how you can protect your assets, contact us today by calling (410) 670-7060.