Top Reasons Why People Go Bankrupt

Top Reasons Why People Go Bankrupt

The bankruptcy figures in America are shocking. The past few years have witnessed a dramatic rise in the number of people who are incapable of paying off their debts.

Following is a list of the most common causes of bankruptcy in America today.

Medical Expenses

Studies have shown that 2/3rd of bankruptcies in the U.S. were due to medical issues like inability to pay high bills, time lost from work, high deductibles and copays, plus job loss, impact Americans.

Critical diseases or serious injuries can easily result in hundreds of thousands of dollars in medical bills. Bills that can quickly wipe out all savings including retirement accounts, college education funds, and home equity.

Once these are exhausted, only option left is bankruptcy.

Unemployment

Unemployment or a job loss due to any reason is destroying. Few people don’t even have an emergency fund to draw from and this only make the situation more difficult, few use credit cards to pay bills, which is again very disastrous.

Poor Management of Funds

There are extremely poor at managing their funds they simply cannot control their spending. They have no idea of their spending to earnings ratio. Financial burdens like Credit card bills, installment debt, car, and other loan payments can finally spiral out of control until finally, the borrower is unable to make even the minimum payment on each type of debt.

And when the borrower is unable to access funds from friends or family or otherwise obtain a debt-consolidation loan, then bankruptcy is usually the unavoidable option.

Divorce or Separation

Divorce fetch us an immense financial strain on both partners in many ways. It starts from the filing for divorce. Initially the legal fees, distribution of marital assets, decree of child support, and/or alimony.

 

Who wants to be bankrupt but there are times when no option is left and Filing for bankruptcy can be the best suitable option for you to move on in life.

Filing bankruptcy can help a person by discarding debt or planning to repay debts. A bankruptcy case generally starts when the debtor files a petition with the bankruptcy court. A petition may be filed by an individual, by spouses together, or by a corporation or other entity.  Virginia Beach bankruptcy Lawyer, Virginia Beach bankruptcy Attorney, Norfolk Bankruptcy Lawyer, Norfolk Bankruptcy Attorney, Chesapeake Bankruptcy Lawyer, Chesapeake Bankruptcy Attorney can assist you in taking right steps and making right decision while filing for bankruptcy.

Pursuing the advice of a qualified lawyer is strongly advised because bankruptcy has long-term financial and legal effects, which can only be foreseen by a lawyer and he can assist you in taking the required steps to address these challenges.

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