Huffington Post

Do you feel like your finances have sunk you in the mud and you can’t get out? Sometimes life costs more than you planned. Maybe you have been hit by one of the following top ten causes of filing bankruptcy as reported in the Huffington Post:

  • Medical Expenses
  • Reduced Income
  • Job Loss
  • Credit Debt
  • Divorce
  • Unexpected Expenses
  • Student Loans
  • Utility Payments
  • Foreclosure
  • Bad Budgeting/Overspending

One way or another, you should probably get some help.

Here are just a few of the problems that may come up when filing bankruptcy:

  1. Bankruptcy may not be the right choice. Based on your income, assets, expenses, and liabilities, you may be better off deciding to stick it out. Although most Chapter 7 filings result in the debtor keeping all of their assets, some people could lose more than they counted on by filing bankruptcy.
  2. Filing under the wrong chapter. The bankruptcy laws are often confusing. Filing under the wrong chapter could result in problems that could actually make your financial situation worse.
  3. Applying the exemptions incorrectly. Every state has their own rules for applying exemptions. You may not even be allowed to use your own state’s exemptions!
  4. Missing forms or schedules. The bankruptcy forms are available to anyone with an internet connection. A typical Chapter 7 bankruptcy filing consists of more than fifty pages of forms and schedules. It is important to have all of the right pieces in place.
  5. Skipping the credit counseling requirement. Two different online courses are required: one before filing and another one after. Make sure you get them done in time and in the right order.
  6. Some debts cannot be discharged. Bankruptcy is often the best choice for someone in severe financial trouble. But if most of your debt cannot be discharged, you might be wasting your time.
  7. Your bankruptcy may have consequences for friends and family. Discharge in bankruptcy may resolve some of your financial issues. But are there co-debtors who will be negatively affected by your bankruptcy?

If you have concerns about how a bankruptcy can affect you, consider talking to an attorney.

There is life after bankruptcy. After all, Donald Trump has filed for bankruptcy six times.