Common Situations in Which Filing for Bankruptcy May Be Your Best Option

 Posted on January 09, 2018 in Bankruptcy

Bankruptcy is designed as a way of helping honest people who are struggling to pay their debts. It can give you a fresh start at managing your budget and spending while allowing you to get established on a more secure footing. The details involved in each individual case are unique, but there are certain types of situations in which filing for bankruptcy makes the most sense.

When to Consider Bankruptcy

There are a number of common scenarios in which bankruptcy may be the best available option. These include:

1. When you are a small business owner and overwhelmed with debt. Starting, promoting, and maintaining a business requires both time and money. When outstanding debts threaten your ability to operate, filing for bankruptcy can provide the relief you need, and may even help keep you from going under.

2. When dealing with a job loss. Even those who work for large, secure employers can find themselves facing sudden layoffs and other types of job losses. Bankruptcy can help protect you from creditor harassment and alleviate debts, providing some much-needed relief while you look for a new job.

3. When dealing with a catastrophic illness or injury. Life throws us a curve ball sometimes. An unexpected illness or injury can impact your ability to work while leaving you facing a mountain of medical bills. Bankruptcy can help alleviate this burden, allowing you to focus on your recovery.

4. When you get sued. As the result of late or missed payments on credit cards, loans, utility bills, and other types of debts, you could find yourself facing a lawsuit in court. As a result, the court could enter a judgment demanding immediate payment and could place liens preventing you from selling certain property. Filing for bankruptcy can help prevent these types of judgments.

5. When you get divorced. Divorce can be devastating financially, as well as emotionally. Issues related to property settlements and debts accumulated during your marriage can leave both you and your spouse financially strapped and unable to start over. Bankruptcy is an option in these situations and can provide both spouses with the clean slate they need.

The Illinois Attorney General advises that there are different types of bankruptcy which may be better suited for each of these situations. Depending on your circumstances and the type of bankruptcy you file, you may be able to keep certain assets, such as your home or car, while negotiating new payment arrangements and eliminating unsecured debts. To determine the type of bankruptcy that would be best for you, the AG recommends consulting with an experienced Illinois bankruptcy attorney.

Let Us Assist You Today

If you are having problems meeting your financial obligations or are dealing with any of the above situations, contact the Davi Law Group. We can arrange a free consultation with a passionate DuPage County bankruptcy attorney, who can advise you on the best course of action in your situation. Get the professional legal guidance you need during this challenging time, and call or contact our office online today.

Sources:

https://www.creditcards.com/credit-card-news/7-times-when-bankruptcy-can-make-sense.php

http://www.illinoisattorneygeneral.gov/consumers/bankruptcy.html