The Truth about Bankruptcy

There is a myth that people who file for bankruptcy are reckless spenders who are irresponsible with money. However, as a bankruptcy attorney located in Toledo, Ohio, with over 20 years of experience, I have found that reality is far different. Although upon occasion I will find a client who spent their money on drugs or gambling, there are actually three major categories that describe the great majority of my bankruptcy clients.

1.) Divorce    It is difficult or even impossible for people to maintain their lifestyle after a divorce. Going from what are usually two pay checks to one pay invariably causes a strain on the family budget.

2.) Medical Debt    Even with the current law mandating health insurance for everyone, most medical plans have high deductibles or co-pays. A serious illness can quickly wipe out a family’s savings.

3.) Loss of a Job    An individual’s budget is based on receiving a certain level of income. When that income stream stops, it is usually impossible to pay bills timely. Often people run up massive credit card debt to cover monthly obligations with the intention of paying everything back once a new job is secured. When that does not happen quickly, an individual is usually saddled with too much debt to overcome.

If you find yourself in a situation where you need to discuss your debt situation, please call me, Attorney Fred Boyk, at 419-327-6160 for a free consultation.