Over 700,000 cases of bankruptcy have been filed each year since the 2008 market crash. Though this number has decreased since its peak in 2010, there are still thousands of cases filed across the country.
If you’re struggling to meet monthly debt payments, it may be time for you to consider joining others who have used bankruptcy as an effective debt relief option and gain long-term financial wellbeing. With the help of Behm Law Group, Ltd. you can navigate the nuanced waters of bankruptcy in Waseca, MN and file a successful case for Chapter 7, Chapter 12, or Chapter 13 bankruptcy relief.
Bankruptcy is a process designed to support debtors, lenders, and the economy as a whole. Different systems of bankruptcy have been in place for centuries, and today’s U.S. Bankruptcy Court has several types of bankruptcy chapters established to treat individual and business debts.
For individuals filing for bankruptcy, the system provides solutions for the most common causes of their financial struggles. For many individuals, there are three primary sources that push them to the point of filing for bankruptcy.
- Medical Bills: Because the U.S. doesn’t provide national healthcare coverage, privatized health insurance companies are the only option for the majority of individuals. Because health insurance providers are private companies, they can be very expensive. In addition to this, medical care itself is very costly, from general check-ups to serious surgeries. For those who can’t afford health insurance, it’s nearly impossible to pay for any medical treatments. Several studies show that accumulated medical bills or sudden expenses are the number one cause of bankruptcy in the U.S.
- Unemployment: While the government provides support for the unemployed via unemployment compensation, it’s often not quite enough to make ends meet. Long-term unemployment will almost certainly create a situation of severe debt, especially if the individual has mortgages, credit card debt, or car loans to repay. Chapter 7 bankruptcy is designed to help those without a steady income resolve debts that they cannot pay while unemployed.
- Divorce: The combination of legal fees, emotional turmoil, increases in living expenses, and a decrease in income as a result of divorce can all create a situation of financial struggle. The cost of divorce is high just in terms of court fees and legal representation, often meeting a minimum of $2,500. In addition, you lose the income of your ex-spouse, and your living expenses may actually increase. All of this makes divorce a main cause of bankruptcy, especially if the couple was facing financial struggles prior to the split.
If you’re considering bankruptcy for any of these reasons and more, you’re not alone. Choosing to take the next step and starting a bankruptcy petition will take you down a path to long-term financial stability. To learn more about bankruptcy in Waseca, MN, contact Behm Law Group, Ltd. at (507) 387-7200 today.