Why Do People File for Bankruptcy?

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People file for bankruptcy for a lot of different reasons. I told someone the other day the story about Tom Petty. In 1979, rock & roll legend, Tom Petty filed for bankruptcy protection to cancel his record contract with Shelter Records. His goal wasn’t so much to eliminate debt as it was to get out of what we call an “executory contract”.

Some of the main goals to file bankruptcy for consumers are:

  • Prevent a vehicle from being repossessed.
  • Prevent a garnishment on our client’s social security income.
  • Eliminate debt as a result of a business that had to stop operating.
  • Stop pending state court lawsuits.
  • Smaller monthly payments on Chapter 13 and Chapter 11 repayment plans than our clients were paying just on their minimum credit card payments.
  • Prevent foreclosures

The most common reasons to file for bankruptcy are to reorganize or eliminate debt, and to protect assets from being lost or sold to pay debts. If you are facing financial problems like these, bankruptcy may be helpful – after all, we file bankruptcies to make things better and give you financial relief.

If you have questions and would like to speak with one of our bankruptcy attorneys about how to obtain financial relief, visit our website at www.kansascitybankruptcy.com or contact W M Law at 913-422-0909 to schedule a free consultation. At W M Law, we are here to help!

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Jeffrey L. Wagoner


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