The reality is that there isn’t a “typical” profile of someone considering a debt reorganization, liquidation, or restructuring.  Financial difficulties can happen to anyone at any time.  The typical client spans a very wide spectrum.  There are, however, common situations that lead people to situations where they need help.  These situations often (but not always) involve one or more of the following scenarios:

• Job loss with extended period of underemployment or non-employment.Extended medical problems which result in unmanageable medical bills and treatment programs.
• Mortgage payments that keep increasing, especially with variable mortgage rates, with a person being unable to cope with the increases.
• Business owners who see their core business decline or evaporate, with a large amount of debts from vendors or suppliers.
• Marital issues leading to divorce, with each party being saddled with large amounts of unanticipated debt.
• The repossession of an asset that has left a person with a large “deficiency” judgment on something, like a boat, house, furniture, or other piece of collateral.
• Unforeseen family emergencies of any kind that cause people to drain away their security reserves.
• Tax issues that have been in hibernation for a long time, and that suddenly become a problem.

Bankruptcy is one of the best, if not the best, ways to manage tax debt.  A person can wipe out tax debt in certain situations, or restructure it with possibly wiping out interest and penalties.

This list is by no means exhaustive.  There are many other situations that can cause problems for people.  Gambling debts, fines and costs in court cases, and various other situations can also act to hurt people.  The list above does show just how common and varied the bankruptcy experience really can be.  You are not alone.  It’s a lot more common than you think.  When you empower yourself by taking action, you will find a great burden released from your shoulders.

 If you would like to schedule a free initial appointment to talk about bankruptcy, please give us a call at 913-385-9900 or send an email to phillipsandthomas@gmail.com.