1. You may need to file bankruptcy if you are unemployed, have limited income and are facing an imminent foreclosure. Bankruptcy can stop foreclosure in its tracks.  In bankruptcy, debtors are often able to catch up on the mortgage and keep their home.  They can also surrender the house in bankruptcy and receive a discharge on any mortgage balance afterward.
  2. You may need to file bankruptcy if your wages are being garnished and you can no longer afford to pay for the necessities of life. Having your wages garnished can cause a ripple effect of problems.  Most debtors are already teetering on the edge of bankruptcy when this happens.  Wage garnishment can be stopped with bankruptcy.
  3. You may need to file bankruptcy if you are facing lawsuits from creditors. If creditors are considering filing a lawsuit against you, filing bankruptcy will stop them from proceeding.
  4. You may file for bankruptcy if you owe a significant amount of back taxes and are unable to repay them.  Yes, some taxes are also eligible for discharge in bankruptcy.
  5. You may need to file bankruptcy if you recently divorced and the split is causing financial chaos. Divorce can have a devastating effect on your finances; bankruptcy can often help minimize the damage.
  6. You may need to file bankruptcy if you are nearing retirement and your debts payments will exceed your income. It’s unfortunate but very possible, that you will reach retirement and not have enough money to cover your expenses.  Bankruptcy can wipe out your debts and protect your retirement nest egg.
  7. You may need to file bankruptcy if your spouse has passed away and you can no longer pay your expenses due to losing your sole source of income.  Many widows are left destitute by the death of a spouse.  Bankruptcy can wipe out debt and leave more income available to pay expenses after the death of a spouse.
  8. You may need to file bankruptcy if you suffered an illness that created massive amounts of medical debt. Medical debt is one of the leading reasons for bankruptcy. Fortunately for debtors, medical debt can be forgiven under the bankruptcy laws.