Filing for bankruptcy is becoming more and more common. According to the American Journal of Public Health, 66.5% of all bankruptcies were tied to medical issues. This can include medical debt itself in addition to the loss of income/wages from time taken away from work. Let's look at some more common reasons why people file for bankruptcy and how bankruptcy attorneys can help.

Credit Challenges

When credit cards are too easy to obtain, people can quickly find themselves overwhelmed with debt. Using credit cards requires a great deal of self-control, and many people struggle with this. When a person is no longer able to make the minimum payments of these debts, the late fees and interest fees can start to pile up quickly. This creates an unmanageable situation. With the right bankruptcy attorneys, you can relieve some of the stress due to credit challenges.

Job Loss

An unexpected job loss can also create a financial situation that seems unmanageable. Without a steady income, bills can quickly get behind including debt payments. When a job is lost, debt payments can usually be put at the bottom of the priority list so that other necessities can be dealt with such as housing, food, fuel, and medical expenses. The good news is that bankruptcy attorneys can help you if you have experienced a job loss.

Poor Spending Habits

Poor spending habits can also result in financial challenges that could lead to bankruptcy. Poor spending often leads to the use of credit cards. When these cards are maxed out and minimum payments can no longer be met, you might start to feel that bankruptcy is the best option.

Unexpected Emergencies

In an ideal world, we would all have plenty of money in savings to handle any emergency, but the truth is that most people don't. When emergencies strike, it could wipe out savings and run up credit cards. This can quickly snowball into a serious financial situation.

Divorce

When a divorce happens, it can create an entirely different financial situation for both parties. You will have less income and might be left with debt that was generated during the marriage. Bankruptcy attorneys can help you during these difficult times to navigate a plan that would work for you to recover financially.

These were just a few common reasons people file for bankruptcy. If you're interested in talking with bankruptcy attorneys about your situation, contact Hedtke Law Office. We are here to help you with your legal issues.