Common Causes to Bankruptcy Filings in Fort Collins

If you have been considering filing a Chapter 7 or a Chapter 13 bankruptcy in Fort Collins, there are some common reasons why this is something you’d consider and a few reasons you might think about, but actually won’t be debt which can be discharged.

Common Reasons People Need to File Chapter 7 or Chapter 13 Bankruptcy in Fort Collins:

• Medical bills are completely out of control.  Maybe after losing work you were under a COBRA plan, it ran out and everything is out of pocket.  On small surgery, like a hernia repair can cost $10,000 or more out of pocket.  Added with other bills, this can be crippling.
• Divorce – Divorce has not only emotional blowback, but the financial costs of going through a divorce can be way outside of your means
• Life Circumstances - Maybe you had a $120,000 per year job two years ago and it seemed secure.  You got laid off and now make $36,000, but your car, your house, etc were all purchased when you had the good job.  Now you can’t make all the payments.

What does not qualify to be discharged?

• Child Support payments
• Government Loans such as Student Loans
• Tax debts to the IRS
• Court orders against you (successful lawsuits you owe money on)

We hope this helps you know why people may be filing for bankruptcy.  Simply said, bankruptcy can be a viable solution when your debts exceed your income and assets.