Michael D. Hart, P.C.

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Financial hardships that could lead to bankruptcy

| May 15, 2019 | Uncategorized |

Some people may think that only irresponsible people have to file for bankruptcy. But this is not true.

In fact, many people who file for bankruptcy are rational, sensible people who run into unexpected hardships. Anyone can find themselves in a difficult financial situation.

What are some common predicaments that could cause a financially stable person to have to file for bankruptcy?

The most common causes of bankruptcy

Financial hardships are often unpredictable. These are a few of the most common reasons people find themselves suddenly struggling.

  • Medical bills – Injuries and illness are almost always unexpected and sometimes insurance does not cover all medical expenses. Unanticipated medical bills can put people into difficult financial situations. Large amounts of medical debt is one of the most common reasons people file for bankruptcy.
  • Loss of a job – Being fired or laid off can spark a period of financial hardship that few people could foresee.
  • Divorce – Few people go into a marriage with the intent of getting divorced. What’s more, the cost of a divorce can be incredibly high.
  • Credit card debt – While credit card debt may be slightly less surprising, it is an issue that can quickly snowball out of control.

If you run into any of these issues, there is a chance you could encounter serious financial issues in the future. You may need to consider declaring bankruptcy as an option.

However, declaring bankruptcy does not need to be scary or intimidating. In fact, it can help people facing insurmountable debt. In most cases, it can help save your home or your car and will not have irreversible effects on your financial future.