Four Common Reasons People File for Bankruptcy

Everywhere you look, journalists and YouTubers are enumerating the financial woes facing the majority of American consumers, but for the most part, they are just stating the obvious. Today, a meal at Taco Bell costs what you used to pay at a sit-down restaurant when you were trying to make a good impression on a first date. Meanwhile, jobs with pensions or retirement savings plans are getting harder to find, and most of us have a reasonable fear that we will have to spend all of our waking hours working for the rest of our lives just to make ends meet. Even if we do this, we still may not be able to repay all of our debts. Filing for bankruptcy protection offers you debt relief, even if it does not solve the underlying problem that led to your indebtedness. Bankruptcy cannot guarantee you good health or stable employment, but it can discharge most of your debts. An Oakland bankruptcy lawyer can help you with your bankruptcy case, regardless of the origin of your debts.

Predatory Lending and High-Risk Financial Products

It is a common lament that the less money you have, the more expensive it is to borrow money. The lower your income and credit score, the less you can borrow and the higher the interest and fees. Many consumers borrow no credit check loans and make purchases on buy now pay later (BNPL) plans because it is the only option they have. Risky financial products such as payday loans, BNPL, and “rent-a-bank” loans that lend money with no credit checks prey on people’s financial desperation. Fortunately, these debts are eligible for discharge in bankruptcy.

Medical Debt

Even if you have a job and health insurance, an illness that is not catastrophic can easily lead to medical bills that are. The situation is even worse if you have a chronic illness that prevents you from working. It is possible to discharge medical debts by filing for bankruptcy protection.

Insufficient Income

If you are living paycheck to paycheck, you are in good company. The majority of American households, including more than half of those with an annual income above $100,000. If you have any money left at the end of the month to make more than the minimum payment on your debts, consider yourself lucky. If not, consider filing for bankruptcy.

Unexpected Financial Setbacks

Some people were doing fine financially until an unexpected financial setback happened. Perhaps they had to step up for a family member who now needs full-time care, or perhaps their spouse walked out, leaving behind a mountain of debt. Bankruptcy protection can provide financial relief, even if it cannot solve your family problems.

Contact the Law Office of Melanie Tavare About Filing for Bankruptcy

A bankruptcy lawyer can help you get out of debt by filing for Chapter 7 or Chapter 13 bankruptcy protection. Contact the Law Office of Melanie Tavare in Oakland, California, or call (510)255-4646 for a free case evaluation.