Situations in which bankruptcy is beneficial

| Jun 13, 2019 | Bankruptcy |

Many people in New Jersey spend a great deal of time and energy planning for their financial future. Often, they will make sacrifices in the present to ensure a stable situation in the future. Unfortunately, these plans can come to a crashing halt, often due to situations beyond the person’s control. In these situations, the best option to manage debt is to seek bankruptcy protection.

For example, one of the most common factors in a bankruptcy filing is medical debt. Not only does a serious medical condition result in medical bills, but some people may be unable to work while they recover or support a loved one during the recovery period. For many, it becomes necessary to travel for treatment, resulting in additional travel and lodging costs. The financial burden can quickly become overwhelming.

Another major life event that could result in the need for financial relief is a long period of unemployment. Sometimes, a person who has lost a job is unable to make ends meet, prompting him or her to use credit cards to survive. Even when another job is obtained, it may be difficult to pay off the debt. Often, people who are going through a divorce may also face debilitating debt due to the costs associated with disentangling two people’s lives and the consequences of decisions originally made based on living in a two-income home.

While bankruptcy may be a last resort for many people in New Jersey, it is often the only option for many people to manage overwhelming debt. Because there are several different requirements that must be met and different options available, many people ask for help from an experienced attorney. With such a professional on their side, they often feel more confident in their ability to successfully petition the court for debt relief.