There are many people who think bankruptcy is for people who were simply not responsible with their debt. Although there are people like this, bankruptcy is often a relief from financial stress from many other factors. The following are three situations that you may find yourself in when bankruptcy may be a good option:
You have recently gone through a divorce
This usually puts a lot of stress on a person's finances. Your income may have dropped if you and your former spouse both worked. You also may be paying alimony to your ex-spouse, and this, too, effectively reduces your income. Child support can be enough to make it difficult to pay some of your outstanding debts. Although child support is not a debt that is covered under a bankruptcy, you may qualify for bankruptcy that will discharge your unsecured debts like credit cards. Or you may be able to reorganize your debts, giving you financial relief after your divorce.
You have lost your job
If you have lost your job and are currently collecting unemployment with no real prospects in sight, this may be an ideal time to declare bankruptcy. Your income has dropped considerably, and if you have a lot of unsecured debt, you are likely to qualify for a bankruptcy, but much of this will depend upon your assets. If you wait until you find another job, the bills will only continue to pile up. And if your next job pays much less than your last job, you may never dig yourself out of debt. If you don't have enough money for an attorney, a bankruptcy attorney understands this and has payment plans for their legal fees.
You have incurred large medical debts
Even with health insurance, the debt from a stay in the hospital or any type of extended illness that requires months of treatment can create large medical bills. For many people, these bills can be insurmountable. However, before you start selling off all of your assets, you should consult with a bankruptcy attorney. There are many assets that you may have that are exempt from bankruptcy, so you will not have to sell them. On the other hand, you may not qualify for bankruptcy, but an attorney can explain what the laws are and how they relate to your current finances. It may be that you are on a course that will likely lead to bankruptcy. An attorney can give you advice on what you should at the present time.
If you are experiencing one of the situations above, you should consult with a bankruptcy attorney. Many bankruptcy attorneys will offer a free initial consultation.