Top 5 reasons people filed for bankruptcy in 2016?
All too often people struggle with consuming debt for reasons out of their control. While most individuals are aware bankruptcy exists, they are often unsure if they will qualify. Often individuals wait far too long to seek an experienced attorney like Zellar & Zellar, Attorneys at Law, Inc., for guidance and advise as to what options are available.
Why Do People End Up in Bankruptcy?
Here are the five most common reasons why people find themselves seeking the assistance of an experienced bankruptcy attorney:
1. Medical Bills – The most common reason people get into financial trouble is because of mounting medical bills. In most cases, people encounter this problem through no fault of their own. It might be because of an accident or the onslaught of a serious disease or disorder that starts the bills coming in the door. Even with insurance, there is no guarantee every aspect of treatment is going to be covered, especially with large deductibles and co-pays. In the worst cases, the only way out might be bankruptcy.
2. Loss of Employment – In a competitive job market, the loss of a job can be devastating. With a large stack of bills sitting on the table, the pressure to find a new job is often intense. The more time that passes without a regular paycheck coming in the door, the closer an individual is going to get towards having to make difficult decisions related to their overall finances.
3. Consumer Debt – It doesn’t take long for people, who may have difficulty managing their finances, to find themselves in over their heads. Credit cards are so easy to get and use. In the wrong hands, credit card spending beyond one’s means can turn into a nightmare of growing debt with limited resources to make even minimum payments. As stress builds, bankruptcy becomes an attractive option.
- Major Life Changes Like Divorce – Divorce is the perfect example of a life-changing event that tends to create havoc in every aspect of a person’s life. With so many changes going on around them, bankruptcy is one way they can eliminate financial issues, allowing them to focus on other problems.5. Unexpected Expenses That Overwhelm – In life, things happen that are beyond one’s control. A natural disaster is the perfect example of how a person’s life can be turned upside down in the blink of an eye. Again, as the pressure mounts across many aspects of their lives, financial issues can be set aside through bankruptcy proceedings.
The reality is there are a number reasons why the bankruptcy courts handle a million cases a year. If any of these reasons sound familiar, it is best to speak to the experienced counsel at Zellar & Zellar, Attorneys at Law, Inc., for a free consultation to discuss how bankruptcy may be the best available option for debt relief.
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