Most Common Reasons Why Individuals Go Bankrupt

Posted on : November 13, 2017
what are the most common reasons people file for bankruptcy

Every person is going to approach the subject of bankruptcy with their own sense, interpretation and concern. Scheduling a consultation with an experienced bankruptcy attorney can help to provide you with further information about many of the most important questions that come up when dealing with bankruptcy issues. There are numerous different individual situations that can prompt people to contemplate bankruptcy. For example, a major change in your life such as a divorce could present you with a financial situation from which you feel you cannot recover.

The most common reason that people choose to file bankruptcy in the United States has to do with medical expenses. Just one major medical expense can set you back significantly and if the creditors begin to come after you, it feels like you may not be able to get on top of this situation. A recent research study conducted at Harvard University, for example, found that 62% of all personal bankruptcies are caused by medical expenses. Another common reason why people contemplate filing for bankruptcy benefits has to do with the loss of a job.

Whether it’s a termination, a resignation or a layoff, losing the income from a job can be very devastating. Some individuals may be lucky enough to get severance but others might get pink slips on their desk with no prior notice. Not having an appropriate emergency fund to draw from in this situation can make things even more difficult for you. Another common reason that individuals schedule consultation with a bankruptcy attorney has to do with access or poor use of credit. Some people struggle to control their spending when it comes to installment debt, credit card bills, car and other loan payments that can finally spiral out of control. Just one emergency situation such as a job loss could mean that you get behind on paying these critical bills and face significant uphill battles in order to get back on track. It is strongly recommended that you schedule a consultation with a bankruptcy lawyer instead to get a perspective on whether or not it might make sense for you file for relief immediately.

Posted in : admin

Comments are closed.