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Why File Bankruptcy?

Posted by Chris Peterson | Dec 04, 2014 | 0 Comments

Why File Bankruptcy?

Why File BankruptcyAt one time, many people believed there was a stigma attached to filing bankruptcy. However, there is nothing to be ashamed of if you find yourself burdened with overwhelming debt and need help, particularly in these difficult economic times. If you are considering bankruptcy, Bryan bankruptcy lawyers can help you decide whether this is your best option and which type to file. So, why file for bankruptcy?

Reasons Bankruptcy Might Be in Your Best Interests

Bankruptcy was never intended for the serial debtor. The majority of people who file for bankruptcy protection do so because they have fallen into unmanageable debt through no fault of their own. Perhaps a family member required a medical procedure for which the insurance paid but a small portion. Or maybe one of the breadwinners in the household was laid off.

The following are some of the situations when bankruptcy may be a good option:

  • Your house is about to be foreclosed upon. A Chapter 13 will halt the foreclosure and allow you to restructure the debt.
  • You have garnered enormous medical bills that you simply cannot pay. Who can pay hundreds of thousands in medical debt? This is one of the most common reason people file bankruptcy today.
  • The major breadwinner was laid off. Loss of income can make it impossible to stay afloat financially without help.
  • Creditors are harassing you. As soon as you file the bankruptcy petition, creditors are required to cease all harassing communications with you.
  • Your wages are being garnished. Filing for Chapter 7 will put a stop to a wage garnishment.
  • You have unwieldy student loan debt. While bankruptcy will not eliminate this debt, a Chapter 13 bankruptcy can allow you to consolidate the debt and lower payments.
  • Your personal property is about to be repossessed. If you have furniture or a car that are about to be taken back by the creditor for non-payment, a Chapter 13 can put a stop to this and allow you to consolidate debt.

There are many other reasons why bankruptcy may be appropriate for you. What you should glean from the above is that the reasons for filing are many, and the type of bankruptcy you should file depends upon your income and the nature of your debt.

Work with Us if You Decide You Need to File Bankruptcy

If you weigh the options and decide that bankruptcy is right for you, Bryan bankruptcy attorneys can help you through the process. Call Peterson Law Group today to arrange a consultation at 979-703-7014 or 936-337-4681.

About the Author

Chris Peterson

Chris Peterson is the owner of Peterson Law Group. He practices primarily in the areas of wills, trusts and estate planning; probate and trust administration; elder law; and business law. Chris is also the owner of Brazos 1031 Exchange Company.


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