Highly Seasoned Legal Professionals

Top reasons people file for bankruptcy

On Behalf of | May 26, 2022 | bankruptcy |

Bankruptcy can happen for many different reasons, and no two cases are the same. One thing that does happen consistently, however, is that people don’t fully understand why bankruptcy occurs. They make assumptions about it, often believing anyone who needs to file has made a serious financial mistake.

But it’s not always mistakes that lead to bankruptcy. Here are some of the top reasons people file.

There’s an unexpected expense

For some people, the margins are just so close that even a small, unexpected expense can be too much. If you suddenly have to buy a new car or have major repairs done, that could be enough to push you toward bankruptcy.

You have medical bills

Even those who have saved up a lot of money are probably not very close to being able to pay off all of their medical bills. These can be incredibly high, even if you’re only in the hospital for a few days. Medical bills are one of the main reasons that people decide that bankruptcy is the right path for them.

The loss of a job

Finally, people will often live with a certain amount of debt, generally based on what they can afford with their monthly income. If you do this, the loss of that job could be devastating.  Losing your job is not always your fault, either. It could be the result of company downsizing or something of this nature.

If you do find yourself in a difficult financial situation, it’s worth considering whether or not bankruptcy is the right solution for you. Talk to an attorney who concentrates in bankruptcy and learn your options.