"Why do people end up filing for bankruptcy?"
If you ask the average person on the street this question, you're likely to get an answer like "they were irresponsible with their finances," or "they used their credit cards too much." Yes, financial mistakes can contribute to a bankruptcy filing, however, a closer examination of the principle reasons for bankruptcy are not so cut and dry. We take a look at just some of these reasons below.
Medical Expenses
It's no secret that serious medical treatment is supremely expensive and even those with medical insurance can find themselves with an overwhelming debt after an accident or diagnosis. One recent Harvard study estimated that more than 60% of personal bankruptcies are due to medical bills and that nearly three-quarters of those were filed by individuals who had some kind of existing healthcare policy.
Divorce
Some couples (in some circumstances) now have amicable, cost-effective options when it comes to divorce, but for many, dissolving a marriage is an expensive prospect. One spouse will likely bear the burnt the financial arrangements a divorce requires and, after legal fees are thrown in, it's no surprise that many consider some form of debt relief after the end of their marriage.
Job Loss
Layoffs, firings, and a lack of contracted or freelance work can all contribute to a bankruptcy filing. Even when these professional speed bumps occur, severance packages and unemployment don't last forever—and the lack of steady income can quickly result in accumulated debt.
Student Loans
Our most recent generation of college graduates are carrying an unprecedented amount of debt. Student loans usually cannot be discharged with a bankruptcy filing and the pressure many of these former students feel to pay them is a major strain on their overall finances and often lead to other, seemingly insurmountable debts.
It doesn't matter what the reasons are for your current financial straits, there are viable debt relief options out there for you. At The Buchalter Law Group, our Brevard County bankruptcy lawyers have more than 35 years of collective experience in this area of the law and know how to navigate our clients to a brighter financial future.
Want to learn more about what our team can do for you? Request a free case evaluation with us today.