There are different types of bankruptcy, but they all focus on providing debt relief. Those who cannot afford to pay off their debts may consider filing.
Filing for bankruptcy is a huge decision, and it should not be taken lightly. It’s important to have as much information as possible before moving forward. This means separating fact from fiction.
One common myth surrounding bankruptcy is that it is always the result of reckless spending. While reckless spending can cause financial troubles, the majority of filers have not been reckless at all. Here are some of the more common factors that contribute to bankruptcy.
1. Loss of employment
Savings are a luxury for most people. The truth is that most people in America live paycheck to paycheck. Just like people can struggle financially, businesses can also get into tight spots. In such instances, they may have to lay staff off. When someone is laid off, they may not have much room for maneuver. They could be in serious financial trouble within a month. For those who can’t get immediately back into employment, bankruptcy may become the only feasible option.
2. Medical expenses
Not only is being faced with injuries or chronic health conditions stressful, but it can be costly. Hospital bills and medical fees can soon amount to thousands of dollars. While comprehensive insurance coverage can assist with this, policies usually don’t cover everything. Millions of people in the States are often faced with the choice of not having the medical procedure they need, or getting medical help and facing overwhelming debts. It’s a very difficult decision and people cannot be blamed for putting their health first.
If your debt has become overwhelming, you are not alone. By seeking legal guidance, you give yourself the best possible chance of getting back on your feet financially.