Life Changes That Can Leave You In Need Of A Chapter 7 Attorney

One of the few positive effects of this bad economy is that it encouraged Americans to take a step back and look at our reckless spending habits. Financial experts warned of the dangers of trying to "keep up with the Joneses" and blamed the credit card companies for allowing Americans to indulge themselves in such a way.

But while out-of-control spending habits do have a part in about 15 percent of all bankruptcies filed, it is more often the case that innocuous or unavoidable life circumstances trigger the need for a chapter 7 attorney.

Medical Bills

As if suffering an illness or injury that requires extensive hospital care wasn't bad enough, thousands of Americans go under financially just trying to stay alive and well. Medical debt is the number one cause of bankruptcy in the United States. It should be noted too that about 80 percent of these people fall into medical debt despite having health insurance.

How does it happen? When struck with illness or injury, people use up their sick days (if they have any) to get paid when they can't make it to work. But a condition, such as cancer, that requires repeated doctor visits over a long period of time results in a loss of income because it takes the person away from work. Without a source of income, the bills burn through people's savings and assets and usually put them into a deep credit card debt hole. Even those who qualify for unemployment and/or disability payments don't receive anywhere near enough money to pay off the mountain of debt they owe the medical world.

Divorce

We all know divorce can get ugly. Even the most amicable splits require a great deal of financial rearranging. Between lawyer fees, alimony payments and moving house, the cost of untying the knot can be tremendous. In fact, studies have shown a recent decline in the divorce rate because couples are opting to stay in their unhappy marriages rather than run the risk of financial destruction afterward. Still, with nearly 1 in 2 marriages ending in divorce these days, the need for a chapter 7 attorney is often the result of a divorce attorney's handiwork.

Student Loans

Benjamin Franklin once said, "An investment in knowledge always pays the best interest." This statement may have held true in the 1700s, but to today's recent college graduates, it probably sounds like a bitter joke. A college education is more accessible today than at any other time in history, but the scarce job market leaves much of our hopeful youth with a degree in one hand and a mountain of debt in the other. High interest rates and overwhelming payments have led many of today's educated youth down the road to bankruptcy rather than success.

Deciding whether bankruptcy is right for your situation is a tough choice, no matter what your reason. Fortunately, the right chapter 13 or chapter 7 attorney can help you through the process and provide you with a clean slate.