There is a stereotype around bankruptcy that people who file are reckless with their spending. While this is true for some people, the majority of individuals file for bankruptcy for reasons that are out of their control. Consider some of the most common causes.
Losing a Job
Layoffs and job termination happen to even the best of employees, and losing a steady income can have devastating consequences. While some workers are lucky enough to collect a severance package, most people aren’t given that benefit. Not having a savings fund to prepare for difficult financial times will only make things worse, leaving people in dire circumstances where they have to turn to credit cards to pay their bills. It’s a vicious cycle that is hard to get out of.
More than half of the bankruptcies filed in the United States are the result of medical issues. Getting sick often leads to job loss, which exacerbates the situation. Even people with a solid savings account aren’t spared from the high bills that come from chronic health issues. Couple that with rising health insurance rates, and people will find themselves under a mountain of debt and no way to get out of it. If this sounds like something you’re currently facing, talking to a bankruptcy Hackettstown NJ attorney is a smart way to see what options are available so you can find financial relief and start focusing on your health.
Filing for Divorce
The cost of filing for divorce can lead to significant financial strain. Spouses first must pay legal fees, then possibly child support and alimony. Additionally, running two separate households after the divorce can lead to unexpected debts, causing someone to get more and more behind with each passing month.
In some cases, filing for bankruptcy is the only relief from a difficult situation.