Many people think that bankruptcy is always the filer’s fault, but this isn’t the case. There are many reasons for bankruptcy that the person who’s filing couldn’t help.
Understanding some of the reasons why people need to turn to bankruptcy may help them to decide if they need to file. It could also help them to feel better about needing to file.
Medical expenses are a major contributing factor
People who get sick or become injured will have medical expenses from those. Even with insurance, these may come with higher co-pays or deductibles. Illness can increase the bills and leave someone with a reduced income, which can be a financial nightmare. Medical bankruptcy is a major issue in this country, but it’s not one that’s likely going to end.
The unexpected loss of income can cause problems
Companies closing or downsizing affects employees. For those who lose their job suddenly for a reason they can’t control, financial difficulties are possible. Many employees live paycheck-to-paycheck so they don’t have a way to make ends meet while they look for another job. They may turn to their credit cards to pay their bills, but they won’t be able to make the payments without an income.
Anyone who’s facing financial issues may choose to pursue bankruptcy. Making sure you understand exactly what you need to do and how filing will affect you is crucial. Someone with knowledge about these matters should be able to help you determine exactly what you need to know so you can enjoy financial freedom.