Bankruptcy may be one of the last things on your mind if everything is going well in your life. You may feel financially stable, have a good-paying job, and not have too much personal debt.
That being said, to no fault of your own, you may experience a life event that leaves you in a position where bankruptcy could be your best option.
Do not fear, you are not alone.
Common life events that may lead to bankruptcy
Many people in Tennessee have to declare bankruptcy due to one of the reasons stated below:
- Hospitalization and medical bills: Hospitalization has the two-pronged dilemma of high costs and missed time from work. Even with health insurance, high deductibles combined with being out of work for months or years at a time can deplete savings accounts and max out credit cards. Medical bills are one of the most common reasons for declaring bankruptcy. If you have a medical emergency, bankruptcy may be the best, and sometimes the only option left.
- Divorce: The legal fees, division of assets, and a decree of child support and/or alimony can cause severe financial strain. Also, falling behind on child support or alimony payments can lead to wage garnishment that affects your ability to pay your other bills.
- Job loss: Changes to your employment status like a layoff, termination, or unexpected resignation can create an income loss that is difficult to manage. If you do not have a rainy day fund, a job loss event can be devastating. And things can be exasperated once you start putting bills on high-interest credit cards.
If you experience one of these life events, your best option may be to consider declaring bankruptcy.
Don’t be afraid, filing bankruptcy with the help of an experienced legal mind, may give you relief and allow you to move onto the next chapter in your life.