Five Triggers Of Chapter 13 Bankruptcy

As we help individuals work through different types of bankruptcies including Chapter 13 bankruptcy situations, we see what they struggle with, and how they strategically use bankruptcy options to manage their financial futures. Here are some of the life events and changes that can require this type of bankruptcy filing.


Bankruptcy and Divorce


It’s no secret that divorce can be expensive, for instance, for a separating spouse that will be responsible for the welfare of children far into the future. But that’s only one aspect of divorce costs that can wreak havoc on someone’s finances and require a chapter 13 filing. We can help to consult with you on how to work through this challenging time. 


Medical Emergencies


Sadly, it’s just the way it is for Americans – many major medical costs are not covered  unless there are comprehensive benefits in place at the time of service. If not, medical bankruptcy is quite common, and something that we help our clients work through as they process their financial responsibilities.


Job Loss or Income Loss


You can’t pay bills if you don’t have income. Too often, a chapter 13 bankruptcy is predicated on the loss of a job or the loss of some other form of income.


The idea that someone loses a full-time job and all of their income at once is something of an outdated idea. For many people in a gig or freelance economy, the situation looks different. Changes to consumer markets, laws and other types of dynamic change can lower the income that someone receives month-to-month, and create a situation where they need to contemplate some type of bankruptcy process. Again, we provide that professional advice on how to navigate this type of situation. It’s not the end! With the right planning, you can emerge stronger and better able to anticipate what the world throws at you. 


Student Loans


Student loans are also incredible financial pressures for those who have invested in higher education by utilizing federal or private funds and borrowing for their tuition.


We deal with all of this and more when helping clients to put together a chapter 13 bankruptcy strategy. Here, you are not losing your assets – instead, you get put on a payment plan to pay off those assets over time. Talk to us about your options including  chapter 13 bankruptcy. You’ll find that having attentive, capable and caring people involved gives you a new sense of optimism and power to meet these challenges head-on.