Labor Day may be the unofficial end to summer, but with temperatures pushing into the 80s, it sure doesn't feel that way. It's a great day to relax and forget the purpose of the day (work!).
As a bankruptcy attorney, people often ask me how many of my clients work. The answer? Virtually all of them! Bankruptcy is an option to help hardworking people more than anyone else. Hardworking people have things to lose, and people to protect, and the bankruptcy process will guard both.
The vast majority of my clients are hardworking people who hit one or two common hardships. The most common is medical bills. This country doesn't do a great job of providing reliable health care for working class citizens, and one or two major medical situations with sub-standard health coverage can push anyone into bankruptcy. Fortunately, medical bills are dischargeable in both Chapter 7 and Chapter 13 bankruptcy. With medical bills often reaching in the tens-of-thousands of dollars or more, bankruptcy is often the only option. Otherwise, these bills will stop you from moving on with your life.
Temporary job loss can also result in bankruptcy, and this can happen all too often in a fluid and recovering economy. Bills can pile up fast in a few short months, especially with interest rates on loans and credit cards well in the double digits. Missed mortgage payments can be paid through Chapter 13 bankruptcy, allowing me to even stop sheriff sales. It is a situation I have seen countless times. Someone is laid off for as little as three or four months, unemployment can't cover the mortgage or credit card payments, they go back to work (sometimes for a reduced salary) but it is too late. The bills are beyond control.
Another common scenario leading to bankruptcy for working individuals is divorce and marital separation. Expenses that were once split must now be paid in full. Two salaries become one, and sometimes all of the bills can't be paid. Divorce can also lead to massive legal bills. Living situations that were feasible while married can fall apart quickly with divorce. Divorce is bad enough on its own, but when it destroys your finances, it makes life that much more difficult. Bankruptcy can help.
Labor Day is a great time to relax and unwind. If you are hardworking and facing debt issues, related to the examples above, or caused by some other misfortune, contact us to discuss your options and see if bankruptcy may provide you with some relief. In the meantime, enjoy summer while it lasts!