Top 5 Reasons for Declaring Bankruptcy

Top 5 Reasons for Declaring Bankruptcy

Are you considering bankruptcy? Don’t worry you are not alone. There has been a dramatic rise in the number of people that have had to file for bankruptcy over the past decade. If you are under financial duress, you’re not alone.

Below is a list of the most common causes of bankruptcy in America today.

Medical Expenses

Serious injuries or diseases can cost hundreds of thousands of dollars. These unexpected medical bills can quickly​ ​deplete savings and retirement accounts, and home equity.​ ​As a result, ​​bankruptcy may be the only shelter left.

Job Loss

Losing your job is devastating and can cause major financial instability. The majority of people do not have an emergency fund to draw from after losing their job. Those who are unable to find similar gainful employment may not be able to recover from the lack of income and financial stability.

Divorce

Division of marital assets, child support and/or alimony, and astronomical legal fees can create tremendous financial strain on both partners after a divorce. The legal costs alone are enough to force some to file for bankruptcy, while wage garnishments to cover back child support or alimony can cause inability to pay bills.

Unexpected Expenses

No matter how much people save and plan ahead there are always unexpected expenses in life Homeowners often face loss of property from theft or a catastrophic event, such as a flood. When budgets are tight, any unforeseen expense can cause increasingly bigger financial problems. These expenses can force someone into bankruptcy.

Credit Cards

Credit card bills can quickly spiral out of control. Once a payment is missed, higher interest rates, late charges and collection fees can drastically increase the amount due.

Financial woes are extremely stressful, but they don’t have to be. There is life after bankruptcy and it starts here. Contact Tom Orr at 609-386-8700 today.