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What are the Most Common Reasons for Filing Bankruptcy?

Hundreds of thousands of Bankruptcies are filed each and every year. Many of these Bankruptcies are personal Bankruptcy cases that are filed to stop foreclosures, while others are filed due to medical debts, job loss, and simple inability to afford monthly payments for debts. However, the most common reasons for Bankruptcies are as follows:

First, the majority of recent Bankruptcy filings were filed to get rid of debt collectors and debt purchasers. Many debts are collected by debt collection companies, while others are sold to third-party debt purchasers. These debt collectors and purchasers can be relentless and sometimes ruthless, and they have forced many individuals to file Bankruptcy to stop the collection efforts and often harassing phone calls and other collection attempts.

Second, many Bankruptcy filings are filed to eliminate credit card debt. While medical debt is a big factor in many Bankruptcies, credit card debt makes up the majority of many individuals’ debts. With rising interest rates on many credit cards, it is easy for these debts to become unmanageable outside of Bankruptcy.

Finally, another common reason for Bankruptcy filings is lawsuits and wage garnishments. Pending lawsuits or garnishments of wages or bank accounts can be devastating to an individual’s financial situation. Filing Bankruptcy can generally stop lawsuits and prevent or stop wage garnishments.

At O’Bryan Law Offices, our experienced Bankruptcy attorneys file Chapter 7 and Chapter 13 Bankruptcies for individuals and couples for a wide variety of reasons. Whether you are considering filing for one of these common reasons or for another reason entirely, call today to schedule your free Bankruptcy consultation with one of our experienced KY bankruptcy attorneys.

At O’Bryan Law Offices, we have helped thousands of individuals and families file Chapter 7 and Chapter 13 Bankruptcies. Our experienced Bankruptcy attorneys will help you understand your options and determine which chapter of Bankruptcy is right for you. Our clients have dealt with many of life’s challenges, resulting in overwhelming debt. They chose to address their debt head on and give themselves the fresh start they deserve.

If you are interested in learning about your options through Bankruptcy, make an appointment to speak with one of the experienced Bankruptcy attorneys at O’Bryan Law Offices today. We now offer free “Life After Bankruptcy” courses to our clients to help them rebuild their credit score. Call us today at 502-339-0222 for a free Bankruptcy consultation. Get a Fresh Start today!


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