No matter who you are, you're prone to making financial mistakes. Even if you do your best to avoid them, you never know what'll creep into your life.
Unfortunately, some financial mistakes are more damaging than others. Depending on the impact of a mistake, you could soon find yourself considering bankruptcy.
Here are some of the most common mistakes that result in a bankruptcy filing:
- Credit card debt: It's easy for credit card debt to quickly add up, especially if you don't have the financial means to pay off your balance in full each month. You could soon find your credit cards maxed out with no solid plan for making progress.
- Job loss: When employed, you do your best to stabilize your finances to ensure that you're ready for anything that comes your way in the future. However, you can never fully prepare for a job loss. It'll hit your mental state and finances like a load of bricks. As your unemployment drags on, there's a greater chance that you'll one day decide to file for bankruptcy.
- Divorce: Even if you protected yourself with a prenuptial agreement, divorce has the potential to take a toll on your finances. Depending on what happens, you could be left in a bad spot, with bankruptcy the only way to regain your financial footing.
There are a variety of financial mistakes and life changes that can result in bankruptcy. It's not the ideal situation, but it's nice to know that you have a strategy you can rely on. If bankruptcy is the answer to your financial trouble, learn more about the process and take action to secure your future with the help of an experienced advocate.