- July 15, 2024
- Thomas Adam
- Bankruptcy
Many people have financial difficulties. About a half million people each year file for bankruptcy in the United States. There are two main types of personal bankruptcy, including Chapter 7 and Chapter 13. They provide options for those who are facing financial difficulties. There are many reasons why people need to file bankruptcy. A knowledgeable bankruptcy attorney will answer your questions and guide you through the bankruptcy process.
Divorce
When couples divorce, it may result in some debts that can be difficult to pay. Florida is an equitable distribution state. This means that in a divorce, your marital property and debt will be fairly divided between both parties. If you have been living above your means, you and your spouse may have accumulated quite a bit of debt. If you do not have the funds or resources to repay the debt, you may need to consider bankruptcy.
Loss of Income
Losing your job can cause immediate panic. Most people live paycheck to paycheck, so when you do not have a job, you could quickly become financially insolvent. Whether you lost your job or got a different job with reduced pay, you may not be able to repay your debt quickly or at all. Rather than get further into debt, the best option may be to seek bankruptcy so you can wipe the slate clean and start over.
Excessive Medical Bills
A sudden illness or accident can result in excessive medical bills. Whether you were hurt in an accident or suffered a medical emergency, the costs of treatment can be high. The bills for an ambulance, emergency room care, hospital stay, surgery, rehabilitation, and ongoing care add up quickly. Even with medical insurance, your portion of the bills might be too much to handle. High medical bills may wipe out your savings and cause you to be financially unsound. Bankruptcy might be a way you can try to resolve financial troubles.
Unexpected Issues
Sometimes, unexpected issues arise that can result in large bills. For instance, if your vehicle breaks down, you may have to pay for expensive repairs or replacements. Other expenses can come up, and repayment can be difficult. You may have lent money to someone who didn’t repay it. Your pet may have needed emergency treatment. You may finally review your finances and realize that you do not have a clear path toward getting out of debt. If that happens, you will want to consult with a bankruptcy attorney to learn your options.
Regardless of the reason, if you find yourself in financial straits you may want to consider bankruptcy as a solution. It is helpful to understand how bankruptcy will help you resolve your financial problems and how it will impact your future. Learn about the two types of bankruptcy, Chapter 7 and Chapter 13, and which might be the best for you and your financial situation. To find out more about bankruptcy, call us at Adam Law Group at (904) 675-1881 for a personal consultation.