No one expects to file for bankruptcy. It's a terrific tool to use in certain cases, but no one sets out with it as the goal. Instead, it's something that's often necessitated by things that are out of your control. These unexpected events can make it the most attractive option to help get life back on track.
For instance, you may have to file after you lose your job. You expected to keep it and maybe you were even an excellent worker, but you got downsized when the company had to make cuts. There was little you could do, but now your debt load doesn't fit with your income and assets.
Or you may have to file after getting divorced. You planned to live on two incomes. Your debt fit, but the divorce was expensive. You and your ex now have twice as many living expenses. You're trying to make it work on one income, and you have to make significant changes.
Another common issue is when a prolonged illness sets in or when a medical emergency comes out of nowhere. The cost of medical care, even with insurance, can be astronomical. It's care you must have, but you can rack up debt in days, weeks or months that you'll never realistically be able to pay off.
Life can be challenging. These hurdles can come out of nowhere. The key to fixing your finances is to really know all of the options that you have -- one of which is Chapter 7 bankruptcy. If you want to learn more about how it works, our website is informative and can answer your questions.