Full question:
What are the most common reasons for filing chapter 7?
- Category: Bankruptcy
- Date:
- State: Alabama
Answer:
The most common reasons for filing a Chapter 7 bankruptcy include:
- Extended periods of unemployment, making it difficult to pay debts.
- Large and often unexpected medical expenses.
- Overextended credit that exceeds the debtor's ability to repay, often due to high interest rates.
- Marital problems leading to financial hardship.
- Other significant unexpected expenses.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.