Here’s Why People File Bankruptcy in Memphis
As a Memphis bankruptcy lawyer, I’ve helped thousands of people get out debt in and around Shelby County. Over the years, I’ve seen a lot of patterns around why people choose bankruptcy. While the reasons may vary, everyone’s looking for some form of freedom, and bankruptcy helps them get there. Here are the top 5 reasons people are filing bankruptcy in Memphis.
Reason 1: Credit Card Debt / Overspending
Credit card debt comes along with so many people’s financial struggles. When you’re in over your head, credit cards offer a short-term way to meet your basic needs.
But then soon enough, interest grows and gets worse month after month. In just a short time, you might end up with thousands of dollars in debt and no clear way to pay it all back.
Bankruptcy includes credit card debt, which gives you a chance to rebuild with a clean slate.
Reason 2: Loss of Employment
Our clients often face some sort of crisis that led them to us, and losing a job certainly counts. Along with unemployment causing plenty of stress and trauma, it also can bring major financial worries.
You shouldn’t have to lose your house or car because your employer no longer needs your services. Your children shouldn’t have to change schools or face housing insecurity the same day your business’s owner decides to close and move to the beach.
Bankruptcy helps people who’ve lost their jobs stop the debt-related problems that may come as a result.
Reason 3: Medical Debt
Unfortunately, in the United States, medical debt leads to a high number of bankruptcies. When you have a medical emergency, the numbers can easily skyrocket. It’s often worse for anyone underinsured or suffering from a lifelong chronic condition.
However, even a seemingly “small” injury can lead to shocking medical expenses. When so many Americans live paycheck to paycheck, relatively low hospital bills can still be impossible to pay back.
Bankruptcy offers a solution for medical debt so you can focus on getting better.
Reason 4: Divorce
Divorce leads to a lot of bankruptcies, and for a lot of reasons. First, the couple often has joint debts but unequal income. If one person stops paying the debt, the other person is responsible even if they can’t afford it. Second, divorce cuts your income in half but not necessarily the expenses.
In addition, some people can’t afford the child support or owe a lot in back payments. But their ex-spouse may desperately need the child support and can’t make ends meet without it. In both cases, the person may want or need bankruptcy.
Bankruptcy helps people who’ve faced divorce get the fresh start they really need.
Reason 5: Unexpected Emergencies
Even beyond all of the above reasons, other unexpected emergencies can lead to bankruptcy. Examples might include:
- death or medical needs of a loved one
- fraud or identity theft
- mental health and/or addiction issues
- and much more
Any unexpected challenge usually affects our finances. Just like working through those issues, there’s no shame in working through financial problems as well.
The Last Straw – What Ultimately Leads People to Filing Bankruptcy in Memphis
Usually the issues above are just extremely stressful for a while. Then, it gets to the point where something has to be done. This usually comes in the form of a threat or penalty, like:
- foreclosure
- car repossession
- wage garnishment
- creditor harassment
Bankruptcy has the power to instantly stop all of the above. With the right attorney, you can get what you want from the process and enjoy a freer and happier life.
File Bankruptcy in Memphis: How We Can Help
Our Memphis attorneys are dedicated to helping you get out of debt and move on. We have helped thousands of people in Memphis do exactly that, and we’ve won multiple awards for client satisfaction in the process.
The conversation is free, and we make it easy to get started. Just call us at 901-327-2100, or fill out the form below.