Reasons Why People File for Bankruptcy

Thousands of individuals file for bankruptcy every year, and these unfortunate financial circumstances can be devastating. The need for a good bankruptcy attorney seems to be increasing, allowing people to go through the process as seamlessly as possible. At Brent George Law, clients are treated with care and compassion when dealing with a bankruptcy. Some of the most common reasons that are cited for filing are listed below. Read through to find out if there are things you can do to prevent your own financial burden.

Medical Bills

According to a study performed by Harvard University, 62 percent of all personal bankruptcy cases are caused by high medical expenses. Serious injuries or rare illnesses can result in hundreds of thousands of dollars in medical bills, especially when one is not insured. A bankruptcy attorney may know how to assist clients as they deal with a financial meltdown as a result of medical care.

Loss of Employment

Without regular income from employment, many people find it difficult to make ends meet. Whether it’s a layoff, termination or a resignation, the loss of a job can be devastating on one’s financial stability. Unless you have an emergency fund set up, it can be hard to pay even basic bills.

Credit Debt

Those people who are unable to control their spending may end up sitting across from a bankruptcy attorney due to an excess use of credit. Debt-consolidation plans may work for a while, but bankruptcy is often the remedy required when credit debt is out of control.

Divorce

Ending a marriage can create a huge financial strain on both spouses. Not only can the legal fees be astronomical, but the division of a couple’s assets may leave each partner with much less in the bank than before. When wage garnishment for things such as child support or spousal support are factored in, it can be nearly impossible to pay the rest of the bills.

Unexpected Expenses

A natural disaster, untimely death or theft can leave people in financial distress. Paying for these unexpected expenses can be very difficult without a backup fund available. It is very unfortunate when bankruptcy is required due to no fault of your own, but it is sometimes a part of life.

Working closely with a bankruptcy attorney like Brent George Law can be a good way for people to deal with the complicated and often frustrating process. Preparation for the future and financial planning can help some people avoid having to file for bankruptcy in many cases; however, legal aid is always there to help when bankruptcy is the only solution.

2017-09-23T21:45:04+00:00December 23rd, 2014|