What are some common reasons people file bankruptcy?
When you’re facing financial problems, you may feel like you are all alone. It may seem like everyone else has their finances in order, while you struggle with growing bills. But don’t feel that way. Many people go through hardships. Sometimes these hardships can be so overwhelming that people turn to bankruptcy to get a new financial start.
Listed below are some of the issues that can lead people to file bankruptcy. Whether it’s due to unexpected circumstances or a few choices that can’t be taken back, overwhelming expenses can add up quickly.
Frequent reasons for bankruptcy
Investopedia gives these factors as common reasons why people file bankruptcy:
- Medical costs. Getting hurt or experiencing an illness can cause huge expenses. Savings can be devoured quickly by medical costs.
- Unemployment. Losing your job can make your world seem to turn upside down. Not everyone has savings to fall back on, and finding another position can take time.
- Spending too much on credit. There is no shortage of ways to buy on credit. Car payments and credit card debt can easily become too large to handle.
- Broken marriages. The end of a marriage is not only emotionally painful – it’s very hard financially, as well.
- Other unforeseen events. Natural disasters can take away your home and possessions. Theft can also have an enormous effect on your life.
One certainty in life is that expenses happen. Even if you try not to spend more money than necessary, costs can arise. And, events can happen that reduce your income.
Whatever you’re facing, don’t feel like you’re the only one. Even though the topic may not come up often in daily conversation, many other people have also faced difficulties. Health problems, job issues and divorce happen. If you’re dealing with large debts, research your options. Take steps to move forward in a positive way. Even though issues may seem intimidating now, things can get better.