' Top 5 Reasons to File for Bankruptcy - Law Offices of Robert M. Geller, P.A.

Top 5 Reasons to File for Bankruptcy

 reasons to file for bankruptcyWhat are the most common reasons to file for bankruptcy?

There are many valid reasons for filing for bankruptcy. According to the American Consumer Credit Counseling (ACCC) nonprofit organization, nearly a tenth of all Americans will file for bankruptcy at some point in their lives.

Bankruptcy is far from a rare occurrence and financial struggles, in general, are even more common.

If you’re considering declaring bankruptcy, it’s important to understand what you’re getting into. No one likes to think about the possibility of going bankrupt, but for some people, it’s a very real possibility. If you’re struggling to keep up with your debts, you might be wondering if bankruptcy is the right choice for you.

Here are the top 5 reasons to file for bankruptcy.

1. Job Loss

If you’ve lost your primary source of income, it can be very difficult to stay afloat financially. Long-term unemployment or significant pay cuts can make it impossible to keep up with your regular expenses and debt payments. In this situation, bankruptcy may be the best option for getting yourself back on track.

2. Medical Bills

Medical debt is one of the most common reasons people file for bankruptcy. Even if you have health insurance, you may still be left with hundreds or even thousands of dollars in medical bills after an unexpected illness or injury. If you find yourself in this situation, bankruptcy can help you get rid of your medical debt and get a fresh start.

3. Foreclosure

If you’re behind on your mortgage payments and facing foreclosure, bankruptcy can help you save your home. Filing for bankruptcy puts an automatic stay on all collection activity, including foreclosure proceedings. This gives you time to catch up on your mortgage payments and keep your home.

4. Creditor Lawsuit

If you’re being harassed by creditors or they’ve threatened to file a lawsuit because of unpaid debt, filing for bankruptcy can put a stop to legal action and give you some peace of mind.

Once you file for bankruptcy, creditors are no longer allowed to contact you. They cannot take any legal action against you, at least in the short term. The automatic stay is not a permanent solution, but it gives you time to breathe and consider your options.

5. Falling Behind on Monthly Debt Payments

If your debts are so high that you can’t afford your monthly payments, bankruptcy can help. It gives you a way to reduce or eliminate some of your debts. This can help make your monthly payments more manageable. It also provides some relief from the financial stress you’ve been living under.

Whether one or more of the reasons above is pushing you toward bankruptcy, it’s important to understand that financial challenges affect your health. The stress of debt takes its toll emotionally and physically. Bankruptcy can help you start fresh and rebuild your life

For more information or to schedule a consultation to discuss your situation with an experienced bankruptcy lawyer, contact the Law Offices of Robert M. Geller at 813-254-5696.


Video Testimonials

Tampa Bankruptcy Law Blog

Do Both Spouses Have to File Bankruptcy?

For some couples, filing for bankruptcy is the best way to get out from under crippling debt. But what if...
Read More

Will Bankruptcy Ruin My Life?

Bankruptcy is a legal solution for people struggling with unmanageable debt. It can be a difficult decision to make. In...
Read More

Can Bankruptcy Take Inheritance?

Are you considering bankruptcy? Do you have concerns about your assets? Can bankruptcy take your inheritance? Here’s what you need...
Read More

Can You Go to Jail for Filing Bankruptcies?

Bankruptcy is a difficult decision. However, it can be necessary if you are struggling with debt. This is true whether...
Read More

Can You File Bankruptcy If You Don’t Have a Job?

Filing for bankruptcy is an intimidating prospect. Unemployment adds another layer of complexity to the situation. Can you file for...
Read More

Who Pays for Bankruptcies?

When a debtor files for bankruptcy, the court discharges the majority of their debt. This means that the creditors must...
Read More

Do You Have to Go to Court to File for Bankruptcy?

If you are considering filing for bankruptcy, one of the biggest questions you may have is whether or not you...
Read More

Can You Rent After Bankruptcy?

Filing for bankruptcy can be an overwhelming experience, and it’s important to understand the implications of this process before you...
Read More

Can You File Bankruptcy on Unemployment Benefits?

If you’re considering filing for bankruptcy due to financial hardship, it can be helpful to understand the various options available....
Read More

Do Bankruptcies Show Up on Background Checks?

The decision to declare bankruptcy can be difficult, and it is important to be aware of the potential consequences. One...
Read More


For The Next 5 Days GET A FREE BOOK About Bankruptcy

Learn More


We are A Debt Relief Agency.
We help people file for bankruptcy under the Bankruptcy Code

Pay Online Bankruptcy Courses Newsletter Subscription

Call For A Free Initial Consultation


Tampa Office

Law Offices of Robert M. Geller, P.A.
807 West Azeele Street
Tampa, FL 33606
T: (813) 254-5696
T: (800) 853-7549
F: (813) 253-3405

Map And Directions

St. Petersburg Office

Law Offices of Robert M. Geller, P.A.
125 5th Street South
(Wells Fargo Financial Center)
2nd Floor, Suite G
St. Petersburg, FL 33701
T: (727) 532-3939

Map And Directions

Pasco Office

23526 State Road 54
Lutz, FL 33559
T: (813) 336-2320

Map And Directions