Estate Litigation Lawyer Phoenix, AZBankruptcy Lawyers Phoenix, AZ

Until the Great Recession of 2008, there had been a long-held attitude among Americans that filing for bankruptcy is a sign of irresponsibility, laziness or poor planning. The belief held that debt should always be avoidable or manageable, and those with overwhelming debt must have done something wrong. For decades, this stigma prevented too many people from filing for bankruptcy who could have benefitted from this resource. 

The Great Recession revealed the truth to the general public: debt isn’t always manageable or avoidable, even if we make all the right decisions. In fact, when you hear the stories of Americans who need to file for bankruptcy, it is easy to see that just about anyone could find themselves facing overwhelming debt due to circumstances they didn’t cause and could not have reasonably predicted. This is just one of the many reasons why it is important to consult a bankruptcy lawyer Phoenix, AZ residents trust if you are struggling with debt. Now that the stigma surrounding bankruptcy has all but disappeared, there is no reason for you to avoid examining all of the debt relief options available to you and your family. Working with a Phoenix, Arizona bankruptcy lawyer from Kamper & Estrada, PLLC will allow you to make an informed decision about your financial situation and your legal options moving forward. You don’t have to navigate your debt challenges alone. We’re here to help. 

Medical Expenses Are the Top Reasons for Bankruptcy

Medical emergencies can happen to anyone at any time. And even if you have insurance, the bills can pile up quickly. Statistics show that about 62 percent of personal bankruptcies in the U.S. are filed primarily due to medical debt. Of those who needed to file for bankruptcy, nearly three-quarters had health insurance.

If you or a loved one gets sick or suffers a serious injury/accident, the financial consequences can be quick and devastating. And prolonged illness or injury makes it even more difficult to earn the money needed to pay off medical debts. In these situations, working with a Phoenix, AZ bankruptcy lawyer to file for bankruptcy can be the most practical way to dig out of debt.

Unemployment and Underemployment Are Serious Risks

The Great Recession of 2008 was a reminder that the economy can contract or crash at any time, and none of us have true job security. Millions of Americans are living paycheck-to-paycheck, which means that a sudden job loss or serious reduction in hours could trigger a financial catastrophe.

Moreover, many people get health insurance through their employer. Losing a job means either going without insurance or paying significantly more for COBRA coverage. In either case, a medical emergency during this time could compound financial suffering and lead to a need to file for bankruptcy. 

Unforeseen Expenses and Emergencies

Emergencies and unplanned expenses happen all the time. Your car breaks down. Your child needs to pay for a school trip. Your water heater breaks and you need to pay for repairs or replacement. Living paycheck-to-paycheck means you can’t absorb those costs.

In 2018, the Federal Reserve Board reported that 40 percent of Americans would be unable to cover a sudden $400 expense without selling something or borrowing money. Four in ten Americans aren’t “bad” or “irresponsible.” They are just financially strapped.

Are You Considering Bankruptcy? A Lawyer Can Help.

If you are facing overwhelming debt, please contact a Phoenix, AZ bankruptcy lawyer at our firm to discuss your options for debt relief, including bankruptcy and debt relief alternatives. Filing for bankruptcy isn’t a sign of failure. It is a legal tool meant to help good people who are stuck in a bad situation. Let us help you determine whether filing for bankruptcy might be the best option available to you.