Frequent Reasons to File and How a Bankruptcy Attorney Can Help

worried couple sitting on a couch and looking at papers


By:Mike Cibik


The United States Bankruptcy Court for the Eastern District of Pennsylvania has compiled statistics from 2016 and found that just less than 10,000 people filed for bankruptcy. These are just the filings for a single calendar year. The most common people who file for bankruptcy include individuals and businesses who file under Chapter 7 and Chapter 11 respectively. There are a variety of reasons why people file bankruptcy in Pennsylvania, but some of the reasons are more common than others.

If in need for filing for bankruptcy, searching for a bankruptcy attorney could be essential and for knowing some of the commonalities:


– Medical Bills
– Foreclosure
– Repossession of Their Vehicle
– Unemployment
– Increased Expenses


Medical Bills:

Medical bills are the overarching front-runner leading individuals to file for bankruptcy in Pennsylvania. You are not alone in the fight against medical debt and the thought of bankruptcy. When in need, finding the proper steps of how to file for bankruptcy could help plenty. It can certainly be seen that a medically uninsured or underinsured individual may face substantial medical bills from an illness or accident. These bills will become increasingly difficult to pay as time is lost at work, resulting in a lower income and no way to afford the stack of medical bills in front of you.

Medical bills and the heavily debated controversy surrounding them is by far the leading cause of bankruptcy in Pennsylvania and the rest of the United States, but they are not the only source of debt and financial hardship plaguing this state. Be mindful that an attorney at law is the most useful resource for any bankruptcy questions or concerns to know before you file for bankruptcy.



Falling behind on mortgage payments can bring the stress and fear of a looming foreclosure. If your house is foreclosed on, you no longer have a home. Many times, you will be able to file for bankruptcy to avoid foreclosure. Bankruptcy has an automatic stay provision that will establish a new payment plan based on the affordability and the amount of debt of the individual at the time of filing. Having bankruptcy lawyers could make the process less strenuous than it already is.


Repossession of Their Vehicle:

Just as you want to avoid losing your home, you also want to avoid losing your vehicle because of failure to make the payments. Bankruptcy stops the danger of repossession by allowing the borrower to stop the repossession process altogether. To better understand the scenario and its possible results, a bankruptcy attorney could be of great aid. The filer may be able to extend the payment plan to a more affordable rate, which allows the owner to make timely payments and keep their vehicle.



With the flow of the economy comes a fluctuation in job stability and unemployment rates. Many people in recent years have lost their jobs or had their hours reduced as a method of cost-saving for companies. If you lose your job or lose hours, it becomes increasingly difficult to keep up with monthly payments, causing a mountain of debt to incur. When individuals, specifically those battling unemployment, have an additional time they view it as an opportunity to file for bankruptcy to eliminate outstanding debts.


Increased Expenses:

Many people see an increase in spending from year to year, especially as their family grows. Unfortunately, salary and wages do not always grow at the same rate as expenses. Individuals who survive on a fixed income or hourly pay struggle to pay their bills as their costs increase. While this cause may be self-promulgated, it is a significant concern in Pennsylvania.


The Philadelphia Bankruptcy Lawyers

At The Law Offices of Cibik & Cataldo, the law firm serves Philadelphia County and the surrounding areas of Montgomery County, Delaware County, Bucks County, and Chester County. Contacting a bankruptcy lawyer will mitigate the risks associated with filing for bankruptcy and will allow you to explore all your options before taking on the complicated legal procedure of bankruptcy.

These are just a few of the most common reasons people file for bankruptcy in Pennsylvania, but they do not cover every possible scenario. If you are considering filing for bankruptcy, we ask that you discuss your legal options with our team at Cibik & Cataldo. Make sure to contact us by filling out our form or by giving us a call for a free consultation at 215-735-1060!


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