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Common factors that can lead to a bankruptcy filing

Many factors in your life might make you more likely to have to file for bankruptcy. While many of these can't be helped, such as unforeseen medical bills or loss of job, there are some that you might have control over. In all cases, it is best to know your options and whether bankruptcy would be helpful or may be avoided.  Talk to a bankruptcy attorney so you are fully informed.

Using your available credit to pay for regular living expenses can leave you financially exposed and ready for bankruptcy. Just the same, you may not have much choice but to rely on credit if you hit an unexpected rough patch and lose your job for a while or just have unusual expenses. Still, reviewing a budget can help you see where your money is going so that you know what you can spend. Seek help with your finances before making any significant moves.  A bankruptcy attorney can advise you of your alternatives.

Divorce is another reason that you might have to file for bankruptcy. Having to live off of one income coupled with the expenses of divorce can leave you needing this financial protection. It can be hard to cover basic living costs and manage a lot of debt after you're on your own.

People who have student debt are also more likely to need to file. It takes an average of 14 years to pay off student loans. Interest accrues with each month that passes with the loans unpaid. While it is highly unlikely that you will be able to get relief from these loans in your bankruptcy case, you might find it easier to make the monthly payments once you aren't carrying any other debts.

No matter what situation you are in, exploring this option to relieve unmanageable debt might be your first step toward financial security.

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