Most Common Reasons To File For Bankruptcy

A misconception in regards to why people file for bankruptcy is because they have been irresponsible with their money. There are situations in which people can accumulate debt due to expensive vacations and a rich lifestyle catching up with them. However, the main reasons that many people file for bankruptcy may shock you. Some of the main reasons that people head to bankruptcy court often come out of necessity or unfortunate situations outside their control.

Medical Bills Represent the Main Reason the File for Bankruptcy

In the United States, two thirds of individuals that file for bankruptcy often do so because of a large medical bill. Medical bills can often force people away from work as well as quickly depress a person’s income. Sick individuals that have a lengthy hospital stay often incur a massive amount of debt that can take years to pay off. Choosing to file for bankruptcy can often be better for one’s future credit rating and more.

Unaffordable mortgages are also a leading cause for filing for bankruptcy protection. The housing market in the United States regularly rises and falls and many people have found themselves in a mortgage which is too high and are facing difficulty when it comes to payments on their home.

Other key drivers for bankruptcy include student loans as well as divorce and separation. When student loans grow out of control or when a person faces a substantial drop in income due to a divorce, bankruptcy protection may need to be introduced in order to protect their finances.

Rather than having a negative connotation to bankruptcy or feeling as though people have simply been careless with their money, it’s important to look towards the main causes of bankruptcy when we look at the nature of the situation as society.

This post was written by Trey Wright, one of the best bankruptcy lawyers in Tallahassee! Trey is one of the founding partners of https://brunerwright.com/, which specializes in areas related to bankruptcy law, estate planning, and business litigation.

The information provided on this website does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this site are for general informational purposes only.  Information on this website may not constitute the most up-to-date legal or other information.  This website contains links to other third-party websites.  Such links are only for the convenience of the reader, user or browser; the ABA and its members do not recommend or endorse the contents of the third-party sites.

Law 

Personal Injury Attorneys Assisting Uber Accident Victims

Personal injury law firms work diligently to get injury compensation for Uber drivers and passengers, as well as third-party drivers and pedestrians harmed by an Uber. We provide dedicated representation with no upfront fees—you only pay if we win. It is in your best interest to consult with an Uber accident lawyer about your case […]

Read More
Law 

Will a Speeding Ticket Affect Insurance? Here’s Everything You Should Know

Speeding is inherently dangerous and is usually at the root of most serious accidents. High-speed crashes are more severe and more likely to result in serious injuries or death. Unfortunately, speeding violations are one of the most common driving convictions in the US. And if you’re wondering, “will a speeding ticket affect my insurance?” the […]

Read More
Law 

How Can the Police Tell if Someone Is Driving High?

Driving while under the influence of drugs or alcohol is never a good decision. When you decide to drive while impaired, you’re not only putting yourself at risk but everyone else around you as well. According to the CDC, in respect to drugs other than alcohol, accidents involving impaired drivers make up about 16% of […]

Read More