Why Someone May File For Bankruptcy

On Behalf of | May 5, 2022 | Bankruptcy |



There are many different reasons a person may be having trouble making ends meet. Some common reasons that people find themselves in financial hardship include medical debt, credit card debt and other unplanned expenses. If you are facing an unimaginable amount of debt, or facing a foreclosure on your home, you might want to consider declaring bankruptcy. It can be difficult to make sense of bankruptcy and the available options so learning the rules and how each chapter differs can be helpful. Learn more about the bankruptcy basics and options you may have.

The two bankruptcy chapters we specialize in is chapter 7 and chapter 13. Chapter 7 is the most common form of bankruptcy that allows you to discharge most of your debt. It can also be for businesses to that need to close their doors due to unexpected financial challenges. Most clients who file chapter 7 are looking to rid themselves of credit card and medical debt. Chapter 13 bankruptcy allows you to keep your property and puts into place a repayment plan with reasonable payments to let you pay off as much debt as you can within three to five years. It is essentially a reorganization of your debt, and a plan is put in place that best fits your needs and financial objectives.

Getting your debt discharged and stopping creditors from calling you is the main reason individuals file for bankruptcy. Other benefits may include being able to keep your home, car and other items in a chapter 13. When your bankruptcy is approved by the court, you will be shielded from lawsuits and other adverse legal problems while you work through the process. You will receive bankruptcy protection called an automatic stay which stops creditors from contacting you about your debt.

Our goal here at DAL Law Firm is to alleviate as much of the financial stress as we can so you are not burdened by debt. Once you have retained our office, you can direct your creditors to contact us and from there we will handle all communication with them. Contact us for a consultation to discuss not only bankruptcy, but a full range of the options that may be available for you at (206) 408-8158, or email us at [email protected].