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Should I File for Bankruptcy If I Live Paycheck to Paycheck?

Dec. 20, 2022

St. Louis bankruptcy attorneys are regularly often asked by people whether or not filing Chapter 7 or 13 bankruptcy is a good option for them. Sometimes it is, sometimes not; it just depends on how deep in debt you are and how your financial life will be after filing.

How Broke Do I Have to Be to File for Bankruptcy?

Go Banking Rates made a ranked list in early 2021 of states where people were most likely to be living paycheck to paycheck, number one being the state that had the least people going through this ordeal. And, although Missouri was pretty highly ranked for not having so many people in this bad situation (the Show-Me State ranked number six on the list when compared to every other state), many folks here still view bankruptcy as a real option when thinking about the wellness of their financial future.

Experts recommend thoroughly looking at your overall weekly/monthly financial situation before filing for bankruptcy. For example, Finance Buzz pointed out that there are many people who are living paycheck to paycheck who may consider Chapter 7, being that it could truly end up providing them with a clean slate to move forward in a better direction than before.

Why People Living Paycheck to Paycheck May Consider Hiring a St. Louis Bankruptcy Attorney

Whenever a person is living from paycheck to paycheck, it means that they are likely living in fear. Why? Well, there's always that sense of pending doom looming in their minds because if anything goes majorly wrong between paydays, it could end up being catastrophic for them and their family.

For instance, imagine a woman who has two children (one a toddler and one in elementary school) and is only making around $15 hourly at her restaurant job. She's paid bi-weekly, and after taking care of her immediate bills (rent, food, daycare, car note, etc.) each payday, she's left with hardly any money to do anything else.

Now, let's say her toddler gets sick, and she has to miss work to stay home for a few days with her. Or, let's say that her car spontaneously starts acting up, and she has to get the alternator fixed because it's her only way to get to work. Any kind of out-of-the-blue expense for a person who works paycheck to paycheck is a serious thing that can domino major financial chaos into their lives.

The example above is an example of the situation many low-income Americans find themselves in 2022. This is why so many people who have been weighed down by a situation like this for a long time will honestly begin to consider contacting a St. Louis bankruptcy attorney to see if filing for Chapter 7 or Chapter 13 bankruptcy is the best thing for them to do.

Call Your Trusted St. Louis Bankruptcy Attorney Today

If filing Chapter 7 or 13 is the right decision for you as a low-income Missourian who is living paycheck to paycheck, then it’s a decision you want to make with the proper legal guidance from a knowledgeable St. Louis bankruptcy attorney. Feel free to contact me today at AKS Law for your initial consultation and to begin regaining your overall peace of mind.