April 15, 2019
Hundreds of thousands of Bankruptcy cases are filed every year. Most are Chapter 7 and Chapter 13 Bankruptcy cases that are filed to stop foreclosures, recover repossessed vehicles, and cancel unsecured debts such as credit cards and medical bills. The reasons for these bankruptcy filings vary, however the most common reasons are as follows:
Many people have suffered a job loss, illness, accident, or some other negative event that has left them with the inability to afford monthly payments on their debt obligations. Once default occurs, debt collectors begin the process of collection. Relentless phone calls, emails, and letters force people to take action to get relief from these harassing collection efforts. Filing bankruptcy provides people the relief they need.
Overwhelming credit card debt is also a common reason people file bankruptcy. With interest rates in excess of 20%, it is extremely difficult to resolve this debt once balances reach $10,000 or more. Fortunately, bankruptcy provides people the ability to get out from under this crushing debt.
Finally, collection lawsuits cause many people to seek relief by filing bankruptcy. Once a creditor has obtained a judgment, they have the ability to garnish wages, levy bank accounts, and seize personal property. These actions can leave people in a devastating financial circumstance. Fortunately, filing bankruptcy immediately stops these actions and prevents all future collection efforts. At Bishop Law Offices, we have dedicated team focused solely on representing people in Chapter 7 and Chapter 13 Bankruptcy cases. Whether you are experiencing a situation previously discussed, or are considering bankruptcy for a different reason, we are here to help you. Please call to schedule a free consultation to discuss the specifics of your situation.