Filing for bankruptcy is not usually one of the top things on anyone’s wish list. While it can have its benefits, it also comes with a series of disadvantages. In most cases, filing for bankruptcy is not something that anyone wants to do. However, in some of these cases, it is the best decision you can make.
There are many reasons why people file for bankruptcy. Following are 4 of the top reasons:
One of the top reasons a lot of people file for bankruptcy is to escape their debt. Nowadays, it is quite common for people to have some amount of outstanding balances behind them. Sometimes bills and payments are controllable, while other times they reach astronomical heights and people struggle to find a way out. When people feel that there is no way to clear debt, they usually contact a lawyer to file for bankruptcy.
The sudden loss of a job is another reason some people choose to file for bankruptcy. If one or both spouses lose their jobs, this is usually a situation where there is no choice but to file for bankruptcy. If the family had excessive bills and obligations that they were easily paying on while employed, they would now find it very difficult to pay these outstanding balances and bankruptcy may be a feasible option.
According to statistics, divorce is one of the top reasons many people file bankruptcy. The legal costs required to file a divorce, the expenses of moving to another place, division of properties and wealth and other costs associated with filing a divorce can all add up with their ongoing debts, causing people to fail to pay their debts. Divorce is one of the top reasons why many people file bankruptcy because of how expensive it can be and the devastating effects it can have on an individual financially and emotionally.
4. Medical Bills
Illnesses and medical bills are another top reason to file bankruptcy. The health-related problems can sometimes have a huge impact on an individual’s finance and have the potential to lead one to file bankruptcy. Medical costs nowadays are really expensive.
Hospital bills can sometimes become too expensive to be covered by health insurance. Usually, sudden illnesses, accidents, and other catastrophic events are so unexpected that people rarely have the time to prepare for them. When people find out that there is no easy way to repay their debts, they make a decision to file for bankruptcy.
There are several reasons to file bankruptcy but there are only a few ways that you can file. Regardless of what your reason for filing bankruptcy may be, it is recommended that you find a suitable way to do it. Hire the help of an experienced bankruptcy lawyer. They will prepare your papers and do the rest of the work. They will also help you determine whether it is the right decision, if you are not sure that you should do it.
The Travis Law Firm provides professional legal representation for Chapter 7 & Chapter 13 bankruptcy services for residents of all cities in Riverside and San Bernardino Counties. We have offices in Riverside, San Bernardino, Victorville, Temecula, Cathedral City and Ontario for the convenience of our Inland Empire, High Desert, and Coachella Valley clients. For more information about our bankruptcy law services and other legal representation, call us today at 1-800-BANKRUPT or (951) 274-9501.