The Common Causes of Personal Bankruptcy

If you are facing financial troubles and considering filing for bankruptcy, it is important to understand that you are not alone. There are a variety of reasons people need debt relief, but the following are some of the most common causes of personal bankruptcies:

• Unemployment. The loss of a job or even a reduction in salary can cause serious financial struggles. If you and your family have cut back on your spending and you are still failing to make ends meet, bankruptcy can help you dig out of the financial hole that you are in.
• Divorce. We all know that divorce can be costly. For many newly single people, filing for bankruptcy is the most effective way to get back on their financial feet.
• Medical expenses. A serious health issue or personal injury typically leads to overwhelming medical bills, even when you have health insurance. An extended stay in the hospital or certain medical treatments can be extremely expensive. If you file a Chapter 7 or Chapter 13 case, you typically can discharge or eliminate the majority (if not all) of your medical bills.
• Foreclosure. If your mortgage lender is threatening to foreclose on your home (or a foreclosure case has already been filed), a bankruptcy case can buy you more time in your home, as well as time to negotiate with your lender.
• Credit cards. Unfortunately, as people slide into debt, they start to depend upon their credit cards to cover their expenses. Credit card debt can accumulate quickly and can be extremely difficult to overcome. Most credit card debt is eligible for discharge on a bankruptcy filing.

If you’re facing one of the above financial circumstances and you want to understand your debt relief options, we are here to help. Let us review your situation and develop a strategy that will provide you relief from your debt.

At The Law Office of Diane Anderson, our lawyer has been through a divorce, a bankruptcy, and faced estate planning and probate termination after her mother passed away at a young age. This kind of experience is unmatched by attorneys who have simply guided their clients through each process. Contact us today to schedule a comprehensive consultation.

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