4 Potential Reasons Why You May Need To File For Bankruptcy

6 July 2017
 Categories: Law, Blog

Many people don't like the idea of filing bankruptcy. However, even though it can be a big step to take and even though it's definitely something that you will want to look into before taking the plunge, it can be a wise decision for many. You should also know that people file bankruptcy on a regular basis for many different reasons. These are four of the common reasons why people file bankruptcy and some of the potential reasons why you may need to think about working with a bankruptcy lawyer yourself:

1. Poor Financial Decisions

Unfortunately, some people find themselves in a bad financial situation simply because of their own poor financial decisions. Sometimes, it can be tough to maintain self-control and to make the right financial decisions, particularly if you have a credit card at the ready that you can whip out so that you can make a purchase. Making too many poor financial decisions can put you in a situation in which you need to file for bankruptcy or look into other similar options, but a bankruptcy lawyer can help you sort things out.

2. Divorce

Divorce can be financially crippling for many reasons. You might be going from living off of two incomes to only living off of one, for example. You could have had to spend a lot of money hiring a good divorce lawyer, or you could have found yourself in a situation in which you have to pay a lot of child support and alimony. If you file for bankruptcy, you may be able to get some financial relief after going through the financial turmoil that can go along with a dissolving marriage.

3. Medical Expenses

One very common reason why a lot of people file for bankruptcy is that they have a lot of medical expenses. If you have been injured or sick, you might have found yourself wading through a huge pile of medical bills that you just can't afford. On top of it, you might have had to miss a lot of work because of your injury or illness, which can put you behind on your other bills.

4. Job Loss

Losing your job can be financially crippling for you and your family for obvious reasons. If you have been unemployed for a while and are not having any luck in finding a job, then you may want to seriously consider filing chapter seven bankruptcy so that you can get yourself back on the right financial track.