What Causes People To File Personal Bankruptcy?

One myth is that people who file bankruptcy are irresponsible. This is usually far from the truth. There are challenging life situations that literally come out of nowhere and are impossible to control. (COVID-19 is a good example of this.) Debt builds up as a result of more ordinary life situations as well, such as medical debt, job loss debt, and divorce debt. Before you know it, you are bankrupt.  As debts rise, bankruptcy is a way that ordanary people can regain control of finances.

What Leads To Becoming Bankrupt?

  • Medical Debt:  Medical debt is the largest of life events that can lead to bankruptcy. Medical debt doesn’t take long to acquire, especially for a devastating disease such as cancer.  In the news lately there has been a lot of talk about the rising cost of prescription drugs.  Drugs to treat cancer are some of the most expensive out there, not to mention the therapy and other medical expenses.  With or without insurance coverage, serious diseases like cancer can quickly result in hundreds of thousands of dollars in unpaid medical bills.  It is most important to treat your illness.  When you are ready and able to learn how bankruptcy may be able to help, one of our compassionate and experienced bankruptcy attorneys are here to help.
  • Job Loss Debt:  State labor reports indicate that Wisconsin, and the nation, are struggling post COVID-19. Job loss is in the top three reasons why a person files for bankruptcy.  If you’ve lost your job and qualify for unemployment, the amount of money you receive may still be less than enough to get by.  (Not to mention, unemployment doesn’t last forever.)  Living on far less than what you had prior to the loss may make it impossible to cover bills or general living expenses.  These expenses add up.  Creditors start to call.  Your utilities get shut off.  Before you give up hope.
  • Divorce Debt:  Researchers have found that divorce rates peaked in 1980 and have since been on a slow decline. This may seem like great news, but not so much when we consider how financially complicated divorces have become in modern day. There are a whole bunch of factors involved with divorce, and they often add up to big financial distress.  If you have gone through a divorce, you may already know how devastating it can be financially. What you may not know is how bankruptcy may help.  Furthermore, you can still buy a home, you can still buy a car, and you can repair your credit score…after filing bankruptcy.

How To Overcome Financial Burden

Sure, we don’t always have control over what is going to happen.  However, we do have control over how we respond and react to any situation.  No matter how financially devastating, there are ways to overcome financial burden. When life leads to personal bankruptcy, don’t despair.

How you respond to financial hardship, and how you fix it is where you’ll find your power.  You’re best move may be to gather information about bankruptcy to determine whether or not it may be right for you. To find out if you are a candidate for bankruptcy, reach out to Debt Advisors for a free consultation to eliminate debt.

Many people are hesitant about filing for bankruptcy due to the numerous myths and misconceptions that surround it. At Debt Advisors Downtown Milwaukee, we aim to provide clarity and debunk these stereotypes associated with bankruptcy. It’s essential to understand that bankruptcy is not a sign of failure but a legal tool designed to help individuals regain their financial footing. By educating yourself about the common myths, you can make an informed decision about your financial future.

Learn about bankruptcy protections, types of bankruptcy, how to get started, what to expect, and who to trust. Filing bankruptcy is the ONLY way to completely eliminate debt. If bankruptcy is right for you, it offers powerful protections that cannot be achieved through alternative solutions such as hardship relief, loans, or debt settlement.

  • Exceptional service. The entire team was friendly and knowledgeable. The attorney took his time to walk me through step by step. I will recommend this law office to anyone!

    J Burks

  • I went through Debt Advisors as a referral by a friend. I am very happy I did so. The staff that I worked with were very helpful and showed a high level of professionalism. They were always able to answer any questions that I had. I was very happy with the attorney that I worked with, Michael Georg. Very professional.

    Terri Grote

  • Attorney Chad Schomburg and Debt Advisors helped me with my debt about three years ago. Chad explained the process to me and answered any questions I had, and the assistants compiled my documentation very efficiently while keeping my case moving forward. They were always available when I needed them, and even years later, I’m able to reach out to them, and they are willing to help. They have turned my life around 100%, and I could not have done it without them! Absolutely recommended!

    Tim Harris

  • They were there for my family from day 1 until the end, 5 years later (Ch. 13). Whenever I had questions or concerns they were always very responsive and gave me excellent advice. Michael and Jeremy are both exceptional bankruptcy attorneys. I highly recommend Debt Advisors.

    Steve

  • After I had to go on disability, I used my credit cards a lot more thinking I could pay them off when I was able to go back to work. That didn’t happen and I found myself so much worse off than I could handle. I went to Debt Advisors feeling terrible about what I had to do. Chad and everyone there were very understanding and put my mind at ease while taking such great care of me. They were there every step of the way and supported me when I was “freaking out”!! Every time I needed to contact them; their response time was amazing!! God forbid I ever need to go through this again, but I know where to turn if I need help! Debt Advisors are more than just filing bankruptcy on my behalf. They really care about what you are going through!! Thank you, Chad, Jeremy, Mike, and everyone at Debt Advisors!! I cannot tell you enough how much I appreciate all of you!! J Hammond

    Steve

  • After I had to go on disability, I used my credit cards a lot more thinking I could pay them off when I was able to go back to work. That didn’t happen and I found myself so much worse off than I could handle. I went to Debt Advisors feeling terrible about what I had to do. Chad and everyone there were very understanding and put my mind at ease while taking such great care of me. They were there every step of the way and supported me when I was “freaking out”!! Every time I needed to contact them; their response time was amazing!! God forbid I ever need to go through this again, but I know where to turn if I need help! Debt Advisors are more than just filing bankruptcy on my behalf. They really care about what you are going through!! Thank you, Chad, Jeremy, Mike, and everyone at Debt Advisors!! I cannot tell you enough how much I appreciate all of you!! J Hammond

    J Hammond

  • Chad Schomburg and his Staff did a phenomenal job for me and in an expeditious manner. I’ve recommend countless clients to Chad Schomburg, Wow!!! Outstanding customer service from the Schomburg office:)

    Lisa Williamson