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

3 Big Bankruptcy Stories from 2022

Bankruptcy is a serious financial decision that can have long-lasting effects. This is true even for multi-million dollar businesses. In...
Read More

5 Questions You Should Ask Before Filing for Bankruptcy

If you're considering filing for bankruptcy, it's important to know what you're getting into. What questions should you ask before...
Read More

Top 5 Reasons to File for Bankruptcy

What are the most common reasons to file for bankruptcy? There are many valid reasons for filing for bankruptcy. According...
Read More

5 Lessons Learned from Filing for Bankruptcy and How to Avoid the Biggest Financial Mistakes

People struggling with the biggest financial mistakes often consider filing for bankruptcy. Bankruptcy can provide relief from overwhelming debt. However,...
Read More

Things to Bring Along to Your Bankruptcy Consultation

Are you considering filing for bankruptcy? If so, one of the most important steps is to consult with an attorney...
Read More

Do You Need a Chapter 7 Bankruptcy Document Checklist? 3 Things You Need to Know

Filing for bankruptcy requires organization. A chapter 7 bankruptcy document checklist can make the process easier. No one ever plans...
Read More

Will a Bankruptcy Document Preparer Save Me Money?

While it may seem like hiring a bankruptcy document preparer will save you money in the short term, this is...
Read More

Robert Geller Shares Advice for People Considering Mortgage-Modification Programs

Robert Geller’s co-authored article “Can Debtors Afford Mortgage-Modification Programs?” was recently featured in the fall 2022 edition of the Consumer...
Read More

8 Things Clients MUST Tell Their Bankruptcy Attorneys in Tampa, Florida

If you are considering filing for bankruptcy, you must find a reputable bankruptcy attorney to help you through the process....
Read More

What Happens After I File for Bankruptcy?

Filing for bankruptcy is a process that comes with a lot of paperwork, stress, and financial strain. But what happens...
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