Life can get hard, especially when debt starts to pile up. For many people in Illinois, especially in Chicago, the rising cost of living and unexpected expenses can make it impossible to keep up. Chapter 7 bankruptcy has become a way out for many who need a fresh start. At The Bill Slayer, Robert J. Adams & Associates, we’re here to guide you through the process and help you decide if Chapter 7 is right for you.
Here are some reasons people file for Chapter 7 bankruptcy and how it can help you get back on track.
1. Inflation and Rising Costs of Basics
Inflation is making it harder for people to afford basic needs. Over the past year, inflation has gone up around 10%, but the costs of essentials like food, clothing, and furniture have risen even more. For many, this means their income doesn’t stretch as far as it used to. Chapter 7 bankruptcy can give relief by erasing some debt, allowing people to cover their basics again without falling deeper into debt.
2. Medical Debt
Medical debt is one of the top reasons people file for bankruptcy. Even with insurance, the cost of health care can be crushing. Copays, deductibles, and treatments not covered by insurance can add up quickly. Chapter 7 can erase medical bills, allowing people to start over.
3. High Rent in Chicago and Nearby Areas
The cost of rent in Chicago and its suburbs keeps rising. For those struggling, paying rent can mean falling behind on other bills. By getting rid of some debt, Chapter 7 bankruptcy can help you focus on covering rent and other essentials.
4. Job Loss or Reduced Income
Illinois has seen many job changes, which can make it hard to keep up with bills. Losing a job, cutting hours, or earning less can lead to debt. Also, missing work due to illness or medical procedures may cause you to fall way behind on your bills. Chapter 7 can relieve some of this burden, helping people rebuild their finances after a tough time.
5. Credit Card Debt and High-Interest Loans
When times get tough, many people use credit cards to make ends meet. However, high interest rates can cause debt to grow fast. Chapter 7 can erase this kind of debt, allowing you to start fresh without high-interest bills hanging over you.
6. Small Business Struggles
Illinois has many small businesses, but when business revenue drops, it can lead to personal debt. Many business owners rely on personal credit to cover business expenses, meaning they’re responsible for those debts if the business fails. Chapter 7 can erase personal debts tied to a business, helping owners move forward after a setback.
7. Divorce and Family Obligations
Divorce can be costly. Splitting finances and meeting new obligations like child support or alimony can be tough. While Chapter 7 doesn’t eliminate child support or alimony, it can erase other debts, making it easier to keep up with family expenses.
8. Wage Garnishments and Legal Judgments
Wage garnishments can make it hard to get by. Chapter 7 stops these garnishments and collections, allowing you to take control of your financial situation. It provides a way to end financial stress and start fresh.
Call The Bill Slayer – Robert J. Adams & Associates
At Robert J. Adams & Associates, we are experienced Chicago bankruptcy attorneys ready to help you understand your options. If you’re struggling with debt, don’t wait. Chapter 7 bankruptcy could be your way out. We’re here to guide you through every step.
Contact us today to see if Chapter 7 bankruptcy is your choice. Let’s work together to help you start fresh and take control of your financial future. Call us at 312-804-1944: a lawyer will answer.