There are many reasons to seek Chapter 7 & 13 bankruptcy, but the end goal is the same in almost every case - get a fresh start after financial troubles. Here are the top 5 reasons for bankruptcy in America:
- Medical Bills
A 2019 study by the American Journal of Public Health estimates that medical expenses are the primary reason in over 65%(!) of bankruptcies cases. This combined with the recent pandemic is creating even more financial hardship for many in our community and throughout the nation.
- Job Loss or Layoff
A job layoff, termination or resignation resulting in the loss of income forces thousands of Americas into bankruptcy every year. Lost benefits such as health insurance can also worsen the financial situation for some.
- Poor Credit, Budgeting or Financing
Mismanaging finances is one of the most avoidable causes of bankruptcy. Check out our blog on financial planning for more information on staying on top of your finances.
Divorce can be costly, even before the attorney fees. In some cases, divorce can lead to a significant loss of income and/or assets.
- Unexpected Bills
Natural disasters, sudden death, and loss of property are just a few examples of how unexpected expenses can lead to bankruptcy.
It is important to contact an attorney to begin fighting your debt. We know that your personal finances are important to you, and we can provide you with compassionate legal assistance. Our firm knows that handling debt and filing for bankruptcy sometimes means that you cannot stop until you obtain a successful result. We know to help you achieve the best outcome available.
We can let you know if bankruptcy would help; and we'd be glad to guide you through rebuilding your credit after bankruptcy. Call us today at 816-842-6200 to speak with an attorney. Or you can email us and schedule your free consultation.