Bankruptcy is an unfortunate reality for many people these days. Several options exist when it comes to the types of bankruptcy that might be best suited for your financial needs. Working with a skilled and experienced bankruptcy lawyer will help make the process easier to understand and navigate from start to finish. The place to start is by understanding why people file for bankruptcy and what can lead someone to the point that filing for bankruptcy is their best or only option. The common causes of bankruptcy include:
Divorce and Separation
According to APA.org, as many as 40% to 50% of American couples end up filing for divorce within the first ten years. The aftermath of a divorce can lead one or both partners into financial instability that can lead to excessive debt and financial stress. Bankruptcy can be one of the options to deal with this fallout.
Expensive Medical Bills
The pile-up of medical expenses can be caused by a number of issues, the most common being things such as disability, illness, or injury. Necessary and life-saving medical care comes with a high price tag that cannot always be made good on. Bankruptcy is one of the few ways to wipe medical debts away.
Poor Financial Management
Sometimes people make poor financial decisions and that can lead to debt issues. Talking with a bankruptcy lawyer can help you deal with financial stress related to things such as student loans, purchasing a car, home payments, and other big purchases and debt-causing investments.
Reduced Income or Job Loss
During times of economic instability and job market decline, personal finances can be thrown into disarray at a moment’s notice. This can lead to extreme financial hardship and mounting debt that cannot be dealt with any other way. A bankruptcy lawyer can make your options clear to you whatever your situation is.
Despite the best planning and financial management, things will happen. Emergencies happen that cannot be fully expected or planned for. Things such as a car breaking down, storm damage, or catastrophic damage can ruin your home, car, or possessions and lead to massif debt and financial troubles.
If an unanticipated tragedy occurs and has caused your financial circumstance to take a turn for the worst, it is important to understand the bankruptcy options that are available to you. A bankruptcy lawyer like us is the best source of information you have in a time like this, so make the call today to get started.