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TOP SEVEN LEADING SITUATIONS OF BANKRUPTCY
Bankruptcy is legal process where you are declaring that you are unable to pay
your debts. When people can’t pay their debts at that time bankruptcy is a
suitable option for them. When people file for bankruptcy, bankruptcy allows them
to start rebuilding their credit faster and putting them on track for a brighter
financial future. According to US bankruptcy court statics every year in USA 1.5
million people file for bankruptcy. Bankruptcy is a tool to help people tide over
their financial hardships and this should never be taken up as a first choice, it
needs to be the last option when all the doors to pay off your debt are closed. An
experienced and skilled bankruptcy lawyer Mr. Brian Linnekens shares a few
reasons and situations why people go bankrupt. You need to know these reasons
of bankruptcy so that you can try and steer clear of these situations and ensure
that you don’t have to ever file bankruptcy. After knowing your financial problems
you can easily control your debts before they take control of you.
Job Loss –
Sometimes people might lose their job and in that time frame they might not be
able to pay off their debts and credit card bills which might also lead to
depression which further results in the piling up of the already accumulated
debts. Also decreasing salary is a big factor in increasing financial hardships. The
end result is that more and more people are applying for bankruptcy.
Unemployment is another big factor in the rising cases of bankruptcy. Watch out
for any career and market changes that might affect you adversely.
Divorce –
Divorce is quite an emotional time for both partners. Divorce is an expensive
process because of high attorney fees, court costs, child support and other
hidden costs, that are hard to identify, but never fail to show up. At this time it is
really important that you need to hire an experienced and skilled bankruptcy
attorney who can help you manage and eliminate your debt in the most feasible
way possible in case you are left with no option but to file for bankruptcy.
Unexpected Emergencies –
Emergencies can come anytime like – car accident, home expense, fire, tree
falling on home. These types of unexpected expenses quickly drain the whole
savings of the people and create more problems to pay other monthly important
expenses, bills and loans.
Medical Expenses –
Recent studies say 62 percent of people are filing bankruptcy due to increasing
medical expenses. Sometime family members suffer from medical issues like
cancer or accidents. Health insurance plans do not cover the entire cost since
the treatment time may prolong based on the gravity of the problem
. Thus medical expenses shoot up and then some people can’t pay the already
existing debts along with the already accumulated medical expenses. Better
keep an emergency fund handy which can be used in times of medical
emergencies. You can also look out of an insurance plan that covers the whole
family for a sustainable and large amount of cover.
Poor or non-existent Financial Planning –
If your financial planning fails then you have to face numerous financial
problems. Managing money is really hard, if you don’t pay your loan installment
and bills on time then creditors will start hounding you with phone calls,
messages and mails. To stop creditor harassment you need to file bankruptcy.
Better have robust financial plans in place and make sure to have a plan B is
the main plan fails to avoid filing bankruptcy.
Student Loan –
Most students are unable to pay their loans timely. Whatever loan type if you
do not pay loan installments on time then it will become a problem for you. To
avoid creditor harassment, students generally file for bankruptcy.
Avoiding Foreclosure on their homesIn America 1% people file for bankruptcy in order to avoid foreclosure on their
homes. And some people try to cut down and reorganize debt by filing for
bankruptcy.
Article Resource - http://www.brianlinnekens.com/2018/07/19/top-seven-leadingsituations-of-bankruptcy/