5 Reasons to Consider Filing for Bankruptcy

5 Reasons to Consider Filing for Bankruptcy

Anyone can file for bankruptcy, including business owners. 

Chapter 7 takes care of “unsecured” personal and business debt.

Chapter 11 is for people and businesses who wish to remove debt without liquifying assets.

Chapter 12 is specific to families who work in farming and fishing.

Chapter 13 is for people not affiliated with a business. It provides the option to pay off your debts over time.

Why You Should Consider Filing for Bankruptcy

Remember: Bankruptcy should not be your first option when getting rid of debt. It is always a good idea to review your finances and see if you can pay off the debt on your own before filing for bankruptcy since it affects your credit.

The question is: when is bankruptcy the best choice?

 

#1: COVID-19 killed your business.

Your facility rent is past due, and while your landlord might be generous, you know you have to get caught up eventually. If COVID has been a downer on your business revenue, bankruptcy may be the way to go. Businesses often file for Chapter 7, 11, or 13 bankruptcy, depending on the type of business and other factors.

 

#2: You got laid off and can’t find a job that pays the same.

If you are one of the unlucky people who got laid off during the pandemic, and you are having trouble finding a position with equal pay, bankruptcy is an option. Gravis Law can help you file for Chapter 7 bankruptcy fast and easily. We will review your income, assets, and debt to work out a plan for relief. Chapter 7 bankruptcy takes care of most debts, with the exception of student loans.

 

#3: You recently had emergency surgery and are behind on payments.

Last-minute medical expenses are one of the largest reasons for personal bankruptcies. They can put a huge dent in your wallet, and it can be difficult to pay them off without taking out what feels like a second mortgage sometimes. Whatever your situation is, Chapter 7 bankruptcy or Chapter 13 bankruptcy may be able to provide relief.

 

#4: Your family farm is going under.

There is no pain like seeing something you worked your whole life for not work out. Instead of saying goodbye to the farm, work with a bankruptcy attorney to review your options. Chapter 12 bankruptcy lets you retain your assets as long as you work out a plan to pay off some of your debt.

 

#5: Your spouse passed away unexpectedly.

The untimely loss of a partner is difficult enough on its own, let alone adding in a voicemail full of debt collector calls. Chapter 7 bankruptcy can remove many debts, including those that your spouse built up during his or her life.

 

Conclusion

Whether you own a business or are a person who is just trying to make ends meet, remember that you do not have to let the bills pile up. Work with a bankruptcy lawyer to help you create a plan to get rid of your debt and get that much-needed fresh start.

 

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