Am I Normal? - For what Reasons do people file for Bankruptcy? Read on if you wonder where you fall....

WHY? WHY ME? WHY NOT? SHOULD I?

The decision to file for Bankrputcy isn't always an easy or an obvious one. Many people who are considering it wonder if it is the right decision and want to look around for validation. It is like the person who wanders over to the buffet table and sees something on the table that they aren't sure about. They look around to see who else is eating it before putting it on their plate. Many people ask me who else is filing for bankruptcy. No, no - not by name, but what kind of people file and why? What are their situations? They want to know "Is their story like mine?"

There are many, many reasons that people turn to Chapter 7 or Chapter 13 for Bankruptcy relief. Obviously, they are people who are having financial difficulties, but people often wonder how people got into those difficulties to begin with.  Often times it is a major life event that led one down the path of being unable to keep up with bills, such as:

  • Losing a Job / Unemployment
  • Spouse's loss of a Job or Unemployment
  • Divorce
  • Illness
  • Lay Offs at Work
  • Caring for an Aging Parent or Sick Child
  • Failed Business
  • Victim of Fraud or Theft
  • Inadequate Insurance
  • Disability
  • Loss of Rental Income / Tenant stopped paying rent
  • Increased Property Taxes
  • Death in the Family

There are of course, also those circumstances where a person just gets in over their head with credit cards. They incur some debt which they figure that they can pay off over time, but the interest grows and the debt does not get paid down. Maybe more expenses need to go on the credit cards, the debt creeps up, creeps up until it is out of control with no real way to pay it back.

There are of course, other reasons for bankruptcy, which are discussed in my free book "Bankruptcy Myths Exposed". While its nice to look around and compare your situation to others, remember- every situation is different and no one should judge. If you are not sure if you should file, contact bankruptcy attorney Carol O'Connor Cadiz in Illinois to discuss your own unique situation privately and confidentially.