No one wants to file for bankruptcy. However, if you find yourself facing financial difficulties, it may be the best thing you can do. Taking this step can help you reduce or eliminate your debt, while giving you the fresh start you need.
There are many situations that can take a toll on your finances, thus increasing the likelihood of a bankruptcy filing. Here are several of the most common:
- Job loss: If you lose your job, you may find it difficult to keep up with your financial obligations. As these pile up, bankruptcy may be the best way to get relief.
- Medical problem: A serious health issue can result in large medical bills. Furthermore, it can hold you back from working, which impacts your finances across the board.
- Unexpected expenses: You never know what types of expenses will enter your life. For example, you could run into a major home repair project that puts strain on your finances.
- Divorce: After a divorce, you may find yourself in a very different financial situation than when you were married. This is particularly true if you're left with a lot of debt and not as much income as you once had.
- Credit card debt: Over time, credit card debt has a way of getting out of control. If you're unable to make any progress, bankruptcy may be the best way to finally find relief.
If you find yourself facing one or more of these situations, don't be shy about learning more about Chapter 7 and Chapter 13 bankruptcy. It's a big step, but once you understand the bankruptcy process and your legal rights, you may feel more comfortable moving forward.