What are the general reasons why people file for bankruptcy? by Menomonee Falls, WI Bankruptcy Attorney.
In my practice, we see a few “general reasons” why clients have the need to file for bankruptcy.
- Divorce. When clients get divorced, they often face financial burdens that were not present while they were married. For example, obtaining health insurance when their spouse usually carried it, child support or maintenance payments, child care expenses, maintaining a household on one income (vs. two when married), and attorney’s fees for obtaining the divorce. When faced with these financial burdens, it is common for clients to use credit cards to make the ends meet, and it becomes a vicious cycle. These clients are overwhelmed. The prospect of starting over – or a “fresh start” – by filing for bankruptcy is of great interest to these clients.
- Medical. Clients have unforeseen illnesses and injuries. These unfortunate events can lead to both loss of income, and outstanding medical bills. Medical facilities are aggressive in their collections, and will garnish wages to recoup their money. Whether client’s wages are being garnished, or they cannot keep up with their medical debts, a bankruptcy is often times the answer.
- Loss of Employment. Clients get fired, laid off, or downsized. When this happens, they turn to credit cards to pay the bills, and keep them “afloat” until they can find employment. Or, they skip mortgage and car payments with the hope of catching up once they find employment. A bankruptcy to wipe out debt incurred while unemployed is a great way to move forward with a “fresh start.”
If you are considering bankrutpcy, contact us at www.mywiattorney.com for a free 1/2 hour consultation.
Menomonee Falls, WI Bankruptcy Attorney serves Southeast Wisconsin including Waukesha County, Washington County, Milwaukee County, Ozaukee County.
Menomonee Falls, WI Bankruptcy Attorney also serves the following communities: Allenton, Addison, Colgate, Erin, Germantown, Hartford, Jackson, Kewaskum, Newberg, Slinger, West Bend, Brookfield, Menomonee Falls, Elm Grove, Pewaukee, Sussex, Lannon, Brown Deer, Miwaukee, fox Point, Cedarburg, Mequon, Bayside, Thiensville, and Wauwatosa.