Why do People File for Bankruptcy?

There are a variety of situations in your personal or professional life that make filing for bankruptcy the best possible option.

There are plenty of good, honest, and hardworking people who end up having to file for bankruptcy at some point in their lives. In many cases, this is through no fault of their own. Personal circumstances, professional setbacks, and the predatory practices of lenders can all make bankruptcy your best available option. Viewed as a way of regaining control of your finances, there is no longer any stigma attached to bankruptcy, either. Filing for bankruptcy in Philadelphia can help you regain your financial security and repair your credit rating. Find out some of the most common reasons why people choose bankruptcy to determine if this might be the best course of action for you.

Common Reasons for Filing Bankruptcy

Bankruptcy was originally designed to provide relief for otherwise honest debtors. For people in the Philadelphia area, filing a bankruptcy petition through the U.S. Bankruptcy Courts provides a way to regain their financial footing. It can allow you to eliminate certain debts while restructuring payments on others to make them more manageable.

Any stigma associated with bankruptcy is largely in the past and based on false stereotypes. Today, millions of people file for bankruptcy due to unexpected situations that leave them few other options. Once they do take this step, they can then go on to quickly rebuild their lives and their credit rating. Among the most commonly cited reasons people give when filing for bankruptcy include:

  • Job losses, failed businesses, and general decreases in income;
  • Bad investments;
  • Tax problems;
  • Divorce or other personal issues;
  • Heavy medical expenses due to accidental injuries, illnesses, and chronic health conditions;
  • Outstanding student loans, which can make paying other bills more challenging;
  • Proving for older relatives or sick family members, which often requires taking on additional expenses.

Getting a Fresh Start Through Bankruptcy

According to a recent Business Insider report, Americans currently carry more than $930 billion in credit card balances. This does not include car payments, mortgages, student loans, medical bills, or other types of debts. Falling behind even a single month can quickly have a snowball effect:

  • Credit collection agencies start hounding you day and night.
  • As your credit score falls, high-interest rates and penalty fees make it impossible to ever get caught up.
  • You begin falling behind on other bills, damaging your credit further.
  • Financial problems you face can take a toll on your physical and mental health, resulting in even more debt.
  • Repossessions, foreclosure notices, terminations of service, and legal actions such as wage garnishment and liens often result.

Bankruptcy can put a stop to this nightmare. It provides the fresh start you need to regain your financial footing, repair your credit rating, and rebuild your life.

Let Philadelphia Bankruptcy Lawyer George Tadross Help You

If you are struggling with debts, Tadross Law provides the trusted guidance and professional legal help you need. To request a free consultation, call (267) 296-9300 or contact Philadelphia bankruptcy lawyer George Tadross online today. 

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Close We are proudly designated as a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code. This website is general in nature and for informational purposes only. This website does not create an attorney client relationship under attorney rules of ethics. An attorney client relationship is created with us only after a meeting and the signing of an attorney client engagement agreement. We encourage you to seek legal counsel regarding your particular situation.