While bankruptcy can provide immense relief to some, filing for it is not as useful or necessary to some as it is to others.
As the year comes to an end, we all hope to end it in a joyful and gracious way. Although every year comes with its trials and tribulations, the last two years have been particularly difficult for most people. A pandemic, a climate in crisis, and a series of tragedies have impacted our collective consciousness. As if these things weren’t enough to complicate our existence, there are personal situations and eventualities that come into our lives and we have no control over. An area that has been severely affected during these last two years has been the finances of lower and middle class citizens who have encountered unexpected situations that have shaken up their financial stability. So it’s no surprise that over these last two years so many people have filed for bankruptcy. Although bankruptcy declaration is an option no one wants to have to recur to, sometimes it is the only viable and worthwhile solution. In these scenarios, a bankruptcy attorney in Tulsa, Oklahoma can be of great help.
What Are the Reasons Behind a Bankruptcy Filing?
According to MoneyFit, “Most bankruptcy filers (40%) have lost their employment or otherwise experienced a significant decrease in their income, causing problems with debts and bills. Other reasons include overspending (25%), medical crises (19%), divorce (9%), being widowed (2%), and dealing with addictions (1%) [and] most filers are consumers dealing with personal finance issues.” Bankruptcy filing is quite common and it’s nothing to be ashamed of. In fact, many successful people in the real estate sphere, politics, entertainment, business, sports, and other fields have filed for bankruptcy. As MoneyFit explains the reasons for filing vary from person to person, but this legal resource makes it possible for people and businesses alike to obtain some financial relief while they recover and get their head above water.
When Is Bankruptcy the Right Call?
While bankruptcy can provide immense relief to some, filing for it is not as useful or necessary to some as it is to others. Bankruptcy is typically best used by those who are dealing with insurmountable debt. According to Debt, if creditors are suing you for failing to repay your debt, if your home is about to be foreclosed on or your car will be repossessed, or you can only rely on credit cards to sustain yourself and cover your needs, then these are strong indicators that you may need to file for bankruptcy. Before arriving at such a conclusion and initiating the process, however, it’s crucial that you meet with an experienced bankruptcy attorney who can examine your finances and make an official determination as to whether bankruptcy is the right approach for you. They will guide you through the process and recommend filing chapters. Typically those who file for bankruptcy, declare chapter 7 and chapter 13 bankruptcy, the most popular chapters. If you or someone you know is in need of a bankruptcy attorney, we recommend getting in touch with the attorneys at the Henson Law Firm.