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Common reasons to file for Chapter 7 bankruptcy

On Behalf of | Mar 26, 2020 | Bankruptcy

Many Illinois residents currently find themselves in a very challenging financial situation. Whether you have seen your hours cut or have lost your job, it can be hard to make ends meet when the income that you depend upon is reduced dramatically. Any savings that you might have to make it through such a difficult time could be depleted quickly, leaving you unsure where to turn next.

You may have questions about the right steps to take to protect the resources that you do have, including your home or car. Filing for Chapter 7 bankruptcy is a real option that may allow you to reduce or eliminate some outstanding debt while you reorganize your financial future. If you are experiencing any of the issues below, you might want to consider filing for bankruptcy protection. 

You are making the minimum payments on high credit card balances. Credit card debt is a very common reason people file for bankruptcy. If you are making only the minimum payments, you are not going to be able to knock down the balance of the debt. You will just be paying off the interest each month, leaving you trapped in a bad situation. Filing for bankruptcy could remove credit card debt and put you on a much better financial path.

You have suffered an injury or illness and have extensive medical debt. Health care is very expensive, and even if you have insurance, it might cost a lot of money out of pocket to treat even a minor injury or illness. Anything that requires hospitalization will greatly increase the bills connected to the care you receive. Bankruptcy allows you to reduce or eliminate this debt, allowing you to move forward in your recovery.

You are unable to make your car payments. Most people depend on their vehicles every day to drive to and from work. Others use their vehicles to provide them with a source of income as either a ride-share or delivery driver. If you are struggling to make your car payment or any other bill, know that bankruptcy might provide you with the opportunity to reassess your situation, and help you gain control over your financial future. 

You do not have to go through these financial problems alone. Take the time to learn more about your options to determine what is right for you and your family. A financial fresh start provides many the opportunity to eliminate their debt once and for all.