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4 common reasons people turn to bankruptcy

On Behalf of | Apr 9, 2017 | Bankruptcy

Overwhelming debt does not just come to those who are careless with money. Debt grows and expands if you lose a job unexpectedly if a medical condition arises and you cannot pay for treatment, or even because you are seeking a divorce. Filing for bankruptcy is not an irresponsible thing to do but may be the key to a fresh financial start. If any of the following situations apply to you, you may benefit from considering bankruptcy.

1. Medical bills

Even if you have an emergency fund, medical bills can quickly spiral out of control. Illness, injury and accidents can leave you facing hundreds of thousands of dollars you cannot pay, and treatment is often necessary to keep you or a loved one alive. Even for those with health insurance, medical debt is one of the most common reasons consumers turn to bankruptcy.

2. Unexpected loss of job

One day, you have your dream job, an excellent salary and fantastic benefits. The next day, the company decides to downsize or must make layoffs, and you are cleaning out your office. These things are often unexpected and can leave you with serious concerns about how to pay your bills.

3. Natural disaster or tragedy

If your home is not insured for certain events like flooding, earthquakes or tornadoes when extreme weather hits, it may be difficult to rebuild and start your life over. This can also apply to times when burglars steal your possessions. If you are not prepared for natural disasters or unexpected tragedies, you may find yourself with bills you cannot pay to replace the things you need to live.

4. Separation or divorce

If you go from one household to two and must pay expenses for a divorce, the debt can quickly become overwhelming. From legal fees to a new home to child support, the costs associated with divorce can be astronomical.

It does not matter why you found yourself in over your head, only that you have the option to start fresh. If you are smothered, depressed and anxious about debts you cannot pay, speak to an attorney today about filing for bankruptcy.