Bankruptcy can happen for many different reasons. Some people simply spend too much money. Others find themselves facing unexpected bills. Others struggle with things like student loans or other types of long-term debt. Life is complicated, and financial complications are often unexpected.
But you may be wondering what some of the top causes are. If you’re going to end up using bankruptcy, what is most likely to contribute? Below are two examples.
One study claimed that medical expenses showed up on about 59% of all bankruptcy filings. They were considered a major factor in these filings, if not the only factor. This makes them one of the most common reasons that people file, and you can see why. The fact that you need medical health care is largely out of your hands, so you simply have to get the treatment that you need and then figure out the financial side later. Many people quickly discover that they can’t afford the expensive treatment, and they have to look into other options.
The next issue to consider is the loss of income. This could be reduced wages or job loss. This showed up in about 78% of all of the filings, making it one of the top reasons, as well. Additionally, experts noted that job loss and medical conditions are sometimes intertwined. Someone may suffer from a disease and need medical treatment, which means they can’t do their job.
If you have found yourself facing bankruptcy for these reasons or any others, just make sure you know what steps to take. Contact an attorney for a free initial consultation so that you full understand your options.