A Bankruptcy Lawyer In Puyallup Wa helps clients who have no other suitable way to manage their current financial problems. Most individuals file Chapter 7, which discharges most of their debt. Those who can afford to pay back most of the obligations within five years with a reasonable payment arrangement may file Chapter 13. Bankruptcy filings are often associated with certain events in a person’s life that cause serious financial issues.
Medical Expenses
Harvard University reports that the majority of personal bankruptcies are connected with medical expenses. More than half of all personal bankruptcies are caused by unaffordable medical bills, and nearly 80 percent of those who file have some type of health insurance. High deductibles and co-pay charges, choosing healthcare providers outside of one’s plan, inadequate coverage and lost wages while being off work all factor into this problem.
Home Foreclosure
Impending home foreclosure is another common reason people consult with a Bankruptcy Lawyer In Puyallup Wa. Sometimes filing for Chapter 13 bankruptcy is the only way these individuals can have the chance to catch up on back payments for their mortgage. The lending institution may have been offering terms that require paying all the money back in too short a time. With Chapter 13, those back payments can be spread out over years, as long as the homeowner pays the current monthly mortgage installments on time.
Reduction in Income
An unexpected reduction in income is commonly connected with foreclosures as well as with bankruptcy filing. A manufacturing plant closing leads to many people losing jobs, as does a major retailer closing several of its stores and an office downsizing workers. These job losses can lead to serious financial difficulties. Especially when people are living paycheck to paycheck, this disruption in income can result in them using credit cards and taking out payday loans to pay essential bills.
The Consumer Bankruptcy Project has reported that only about 13 percent of bankruptcy filings are due to overspending with credit cards or loans, or investment failures. Most filings are the result of a negative life event. People who need legal assistance in this process may contact a lawyer such as Rafal Gorski.
