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Top Five Reasons For Filing Bankruptcy

Charlotte Bankruptcy Lawyer Bryan W. Stone of Arnold & Smith, PLLC answers the question “What are my alternatives to bankruptcy ?”

People are often forced to consider filing for bankruptcy for a variety of reasons. Maybe it’s a job loss or a medical emergency that led to more bills than you can handle. One article on Yahoo discussed the five leading causes of bankruptcy in the United States, some of which may surprise you.

 

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1.      Medical Bills

 

Though it may surprise many people, medical expenses are the number one reason for personal bankruptcies in the United States. A study conducted by researchers at Harvard University discovered that medical bills were the cause of bankruptcy in 62 percent of all cases. Shockingly, 78 percent of those filing for bankruptcy protection actually had some form of health insurance, meaning that the problem of expensive medical bills can impact almost anyone, not just the uninsured.
 

2.      Job Loss

Job loss, either from firing or resignation, can be economically devastating to a family’s finances. While some people receive severance packages that can cushion the blow, many others are simply told to clean out their desk and sent on their way. A lack of emergency funds can exacerbate the problems caused by job loss and push families into bankruptcy quickly.


 
3.      Excessive use of credit

Though unexpected events are responsible for far more bankruptcies than most people might assume, some bankruptcies happen because an individual has simply spent more than they can afford to pay back. High credit card debt, car loans and other consumer debt can quickly get out of hand and force otherwise stable families into bankruptcy.
 
4.      Divorce

Everyone knows that divorce can be expensive, but many people fail to realize that in some cases the legal fees and division of assets can prove so crushingly costly that bankruptcy is the only way to survive. In many cases, experts say divorce leads to bankruptcy when couples try to maintain two homes on the same income that used to sustain only one. By refusing to lower standards of living to reflect changed economic realities, couples are asking for trouble.

5.      Unexpected expenses

Finally, the sudden loss of property can push some families into bankruptcy. Examples include loss due to theft or natural disasters that can hit those without sufficient insurance especially hard. Those without proper coverage may not have sufficient emergency funds to pay for repairs and could find themselves buried under a mountain of debt as a result.

If you find yourself needing the services of a Charlotte, North Carolina bankruptcy attorney, please call the skilled lawyers at Arnold & Smith, PLLC today at (704) 370-2828. As professionals who are experienced in the bankruptcy arena, our attorneys will provide you with the best advice for your particular situation.

Source:
“Top 5 Reasons Why People Go Bankrupt,” by Mark Cussen, published at Finance.Yahoo.com.

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