If you are questioning whether you should file bankruptcy, it may be helpful to look at some of the most common reasons that other people file. Some people have the idea that bankruptcy means you have failed in life somehow. This is how to look at it only if you want to beat yourself up. However, another way to see it is to realize that you now have a better understanding of your financial limits, and you refuse to let your past determine the details of your future. For many, bankruptcy is not the end of the line but an opportunity for a new beginning. Click here for more information about Chapter 7 (http://www.zerodownbankruptcy.com/chapter-7/).
Expensive Medical Bills
Unfortunately, it only takes one illness or injury for the medical bills to start piling up. Many people become so overwhelmed with medical bills that they can’t seem to ever envision paying them off. Even if you try to manage the bills, your other open accounts may suffer for it. In most cases, medical bills cannot be avoided if you or someone you are financially responsible for had medical issues that needed to be addressed. Since medical bills are often taken into consideration when you apply for a line of credit, they can reduce your quality of life through no fault of your own.
Loss of Income
One of the most common reasons people file bankruptcy is because of a loss of income. There are plenty of ways to lose an income without actually doing anything wrong. When you face that loss coupled with overwhelming debt, bankruptcy may be the only way to get any kind of relief. Below are some of the reasons that a person might lose their income or have it significantly reduced:
- Divorce that leads to alimony payments and an assumption of debt to be taken care of on your own rather than with another person
- Child custody and child support orders that limit your disposable income so that you are unable to meet all your financial obligations without violating the court order for support
- Loss of income due to job loss from layoffs, changes in the market, or a relocation of the company
- Loss of income due to a sudden inability to work, even if you qualify for disability
Significant Life Events
Life has a way of throwing curve balls when you are not looking for them. For some, it might be a medical issue. For others, it could be a car accident or a natural disaster that destroyed their home, causing them to relocate and possibly need to find new employment.
Even if there are insurance payments that take the brunt of the financial burden for the event, it does not mean that what follows is going to make managing finances as easy as it once was. This is especially true if you were already struggling before the event. For information about foreclosure defense, click here (http://www.zerodownbankruptcy.com/foreclosure-defense/).
During financial times like these, very few people are able to maintain a savings account that can ease the burden when there is a significant change in finances. When that happens, it may be time to consider bankruptcy.
Please share this post online with friends and family members who have faced some of these life changes and may benefit from filing bankruptcy.
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