If you are overwhelmed by debt, bankruptcy can help you get a new start
Life does not always go as expected. Even when you try your best to be financially responsible, you can find yourself drowning in debt due to medical bills, losing your job, divorce, high credit card interest rates, and other financial disasters. When faced with these situations, people often think of bankruptcy as a last resort, but they shouldn’t.
The truth is that bankruptcy can be the best and most responsible path for getting a fresh financial start. An experienced New York bankruptcy lawyer can help you determine if bankruptcy will get you a more secure financial recovery.
Medical bills account for the largest number of bankruptcies
Depending upon which recent research you read, medical bills are the leading cause of 25%, 50% or 66% of all bankruptcies. Rising healthcare costs have led to increasing medical debt. This is true for people with or without health insurance. The cost of insurance premiums, copays, and deductibles can quickly add up to $10,000 or more. Medical debt can be just the beginning of a financial disaster. If you have an unexpected hospital or nursing home stay, you could be out of work and incur even more debt from lost income.
If you lose your job, bills can pile up quickly
Today’s employers seem to be more concerned with their stockholders than their employees. The days of lifetime employment with one company ended a few decades ago. Due to the great recession that began in 2008, everyone knows someone who was laid off for an extended period of time.
Although unemployment rates are now at historical lows, today many people who lost their jobs during the recession work temporary or part-time jobs. And companies still regularly use layoffs as a short-term solution to reduce expenses and boost stock prices. Along with rising housing and medical costs, when you lose your job, you can find yourself drowning in debt.
Bankruptcy can be the fresh start you need after a divorce
Filing for bankruptcy can help all parties get a new financial start as you move on after your divorce. Divorce can drain both your emotions and your bank accounts. Frequently one or both former spouses have difficulty adjusting to living on a reduced income. Bills can start to pile up during and after the divorce process. Your ex-spouse may have left you with unpaid debts that don’t go away when the divorce is final. Bankruptcy can help you get on with your new life without worrying about your bills and bill collectors.
Though it can be a big help, bankruptcy will not eliminate all your financial obligations and debts. For example, you will still be obliged to pay spousal and child support payments after you file for bankruptcy. Before you file for bankruptcy after a divorce, contact an attorney who specializes in bankruptcies and debt management strategies.
Contact a Bronx bankruptcy attorney for a free consultation
Bronx attorney Thomas M. Denaro, Esq. has more than 30 years of experience helping New York clients overcome their financial problems. If you are considering filing for bankruptcy in the Bronx, Bronx and Westchester, Queens, Kings, Richmond, Suffolk, Nassau, Rockland, Orange, Putnam, and Duchess Counties, contact us today online or call (718) 863-6000 to arrange a free consultation with a bankruptcy attorney you can trust.