Money Matters: 3 Reasons Why People Go Bankrupt
If you are like most people, you work very hard to provide for yourself and your family. Hoping for the best and preparing for the worst is the philosophy that most American workers abide by.
Missing one paycheck will usually throw you into a financial tailspin. The last thing anyone wants is to exhaust all of their financial resources when trying to rebound from a hardship.
One of the most common solutions people use to get out of this financial quagmire is filing for bankruptcy. The following are some of the most common reasons why people go bankrupt.
1. Dealing With a Plethora of Medical Debt
A study conducted by Harvard University found that nearly 62 percent of all personal bankruptcies were caused by medical debt. Most people take their good health for granted and are ill-prepared to handle serious illnesses or injuries.
A large portion of Americans are without any form of medical insurance. This means that the cost of the treatments they receive will be all out of pocket. If you are currently swimming in a sea of medical debt, now is the time to find a cheap bankruptcy lawyer to explore your options. They will be able to look at your case objectively and provide you with the guidance needed to get through this difficult time in your life.
2. The Inability to Pay High Credit Card Balances
Some people love buying expensive gifts for their friends and family members. If a person does not have the money to pay for these lavish gifts out of pocket, they will often use credit cards.
When times get tough, you may use credit cards to fill up your gas tank or buy groceries. The higher your credit card debt gets, the harder you may find it to pay your monthly minimums. If you are out of work due to injury or have lost your job due to downsizing, money will be very scarce.
While a debt consolidation plan can be helpful, in some cases they merely delay the fact that a person needs to file for bankruptcy. Receiving harassing phone calls and letters from your creditors can be extremely stressful. This is why you need to reach out to a bankruptcy lawyer to figure out how to resolve this situation in a hurry.
3. Unexpected Expenses Can Cause Major Problems
Having a budget in place is a great way to see where your money goes each month. However, when unexpected expenses arise, the budget you have in place will get turned upside down in a hurry.
Often times, these expenses will be caused by things like property loss following a natural disaster or even a car accidents. If the place you work at is destroyed in one of these acts of nature, it may lead to you being unable to get a paycheck for a while.
Waiting too long to file for bankruptcy will only add to your stress. Attempting to handle filing for bankruptcy on your own is a recipe for disaster. Reaching out to a bankruptcy attorney is the best way to avoid mistakes during this process.
If you are looking for a lawyer to help with your bankruptcy, going in for a few consultations is a good idea. The information you get from these consultations will help you narrow down the selection of bankruptcy lawyers in your area.