There was a lot of financial stress in 2020. The COVID-19 pandemic forced our society to shut down for a time, and government benefits were hard to come by for millions of people. Chapter 7 bankruptcy offered a way for some people to seek relief, even though bankruptcy filings are actually down from 2019, according to the American Bankruptcy Institute.
Are your bills piling up? Do creditors keep calling you and harassing you every day? Chapter 7 bankruptcy is one option you have. Checkett, Pauly, Bay & Morgan, LLC, understands your situation, and we’ll advise you with personalized, world-class service. In today’s blog, we discuss the main reasons why people declare Chapter 7 bankruptcy.
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Medical Bills
In 2019, the American Journal of Public Health noted that two-thirds of all bankruptcies were due to medical expenses. Not only were these filings due to high medical costs, debt, and bills, but also because patients weren’t at work when they were undergoing medical treatments or they couldn’t work because they were injured. Chapter 7 bankruptcy offers relief for people who have mounting medical bills.
Job Loss
Job losses in 2020 were in the tens of millions. State and federal unemployment programs, coupled with eviction moratoriums, helped millions of people avoid bankruptcy. Under normal circumstances, a job loss represents another reason why people declare Chapter 7. Unemployment benefits may not be enough to cover your basic expenses. Meanwhile, your debts continue to rise.
Divorce
Divorce or marriage dissolutions cause enormous financial stress on families. Not only do you face sudden income loss from your partner, but you also have to pay for an attorney. You might also be liable for child support payments. Garnishments, spousal support, and child support may cause financial hardship, but Chapter 7 bankruptcy offers a way to get rid of some debts.
Excess Use of Credit
How much money do you spend on credit cards? Did you take out an installment loan and then you couldn’t pay it back? When you max out credit cards, monthly payments can spiral out of control. Installment loans may quickly rack up interest, especially if they’re unsecured, high-interest loans. You might have stopped paying down your debts because of medical bills, a job loss, or unexpected circumstances due to a natural disaster like a flood, tornado, hurricane, or fire.
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Chapter 7 Bankruptcy Attorneys at Checkett, Pauly, Bay & Morgan, LLC
We understand that deciding to declare bankruptcy isn’t an easy choice. The experienced Chapter 7 bankruptcy attorneys at Checkett, Pauly, Bay & Morgan promise to handle your case with empathy, professionalism, and world-class service. Contact Checkett, Pauly, Bay & Morgan, LLC, or call (417) 358-4049 for more information on Chapter 7 bankruptcy. The first consultation is free.