Why Do People File Bankruptcy?

There are many misconceptions about bankruptcy. It is quite common for individuals to believe that they alone are at fault for their financial problems. However, the majority of the time the individual seeking bankruptcy protection was put in the position at little or no fault of their own.

Medical Debts

Studies have shown that medical expenses are the primary cause of bankruptcy filings. A study performed in 2009 by Harvard University concluded that 62% of all personal bankruptcies resulted from medical bills. The study also stated that over 70% of these individuals had some sort of medical insurance.

Job Loss

The next leading cause of bankruptcy filings is job loss. Once you lose a primary source of income in your household, it is extremely difficult and usually impossible to keep your bills current. Many people lose employment without much notice and therefore have no chance to prepare for the sudden loss of income.

Divorce

Another leading cause of bankruptcy filings is divorce. After spending a period of time budgeting for a family, the split in income and expenses can be crippling. The costs that come with divorce are also unexpected and can cause people to fall behind on other bills.

Regardless of the reason for your financial difficulties, it is imperative to fully understand what your options are. A meeting with one of our experienced attorneys will not only help you acquire a clear perspective of how to conquer your debt problems, it can also help relieve the burden that you are wrongfully placing solely on your shoulders. Please call our office nearest you to set up a free consultation today.

 

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