The 6 Common Reasons People File for Bankruptcy

reasons why people file for bankruptcy missouri

Legal Help For Your Bankruptcy Journey

Many people file for bankruptcy every day in an effort to escape their severe economic situations. This is the outcome of a significant problem that has an impact on people’s financial accounts and lives. Not only does this situation exist, but it also has a reason for existing. 

It results from a complication of an action or an unavoidable condition. For many people whose financial situations have spiraled out of control, bankruptcy is the first line of defense. Although there are different reasons why people file for bankruptcy, they can all be resolved in the same way.

Our firm has provided a more thorough explanation of the bankruptcy causes listed below.

  • Credit Problems 
  • Medical Expenses 
  • Divorce
  • Poor Handling of Finances
  • Employment Loss
  • Unexpected Emergencies 

Our Missouri bankruptcy attorney at Roach Bankruptcy Center, LLC, is adamant that with our legal support, you may improve your financial circumstances. Regardless of the cause, declaring bankruptcy is a strategy that can erase a significant percentage of your debt. 

What Are The Common Reasons Behind Bankruptcy Filing? 

People frequently inquire about the reasons behind bankruptcy filings. Regarding frequent bankruptcy fallacies, too many people continue to follow the counsel of uninformed friends and family. The following six bankruptcy triggers can occur to anyone at any moment and can serve as a fresh start for those who are having financial difficulties.

  • Credit Problems

People spend money they don’t have since installment loans and credit cards are so widely available. Those who engage in this practice may find themselves unable to pay even the minimum amount owed on their loans when it gets out of hand. Although a home equity loan or debt consolidation strategy may help manage these bills in the near term, many people who select these options end up declaring bankruptcy in the long run.

  • High Medical Costs 

An unanticipated medical issue that is not covered or is seen as the dreaded “pre-existing condition” will frequently result in tens of thousands of dollars in unforeseen bills for a family, making health insurance a confusing and stressful component of everyone’s life. The financial burden of even a mild medical emergency can rapidly become too great.

It is easy to understand why a trip to the hospital can result in major debt trouble when you consider the time that must be missed from work and the loss of revenue. Especially for everyone or anyone who leads a healthy lifestyle but suffers a catastrophic injury or sickness, bankruptcy is frequently their only option when they are drowning in medical debt. 

  • Divorce 

Divorce can cause financial difficulties from start to finish, in addition to being personally traumatic. Even before adding alimony, child support, and the added expense of maintaining two separate houses, legal fees for both parties can be incredibly expensive. Wage garnishment may occur if a person is unable (or unwilling) to pay alimony or child support, making it even less likely that they will be able to pay off all of their debts. The recipient may potentially get into financial difficulties if one party refuses to make these payments.

Our Kansas bankruptcy lawyer will help you decide if filing for bankruptcy is the best course of action if your income is being divided between two people.

  • Financial Mismanagement 

One factor leading to bankruptcy that many people experience is poor financial management. It’s possible that you won’t be able to handle any unforeseen bills if you are living paycheck to paycheck and have no savings. Also, it won’t take long for your financial situation to become problematic if you consistently spend more money than you bring in. 

It is frequently related to those who have completed their education and are now using credit without fully understanding the repercussions. Once the grace period has expired, college loans can become problematic for young people and couples. A person’s financial condition may also be harmed if they decide to buy a house or car that they cannot fairly afford. It’s vital to realize you’re not the only one if you’re having trouble paying your bills. 

Although it could be challenging to handle, many people find themselves in this predicament. Fortunately, there is always a solution and it is important to speak with our bankruptcy attorney to help you with your situation. 

  • Employment Loss 

The loss of a job or a sizable source of income is among the common causes of a bankruptcy filing. With an increase in unemployment, the rate of bankruptcy has grown. Due to this, it is challenging to pay bills on time each month, let alone any other debts that could be due. If you don’t have a consistent source of income coming in, it can be quite challenging to make ends meet. 

People who have lost their job are put to the test by losing insurance protection and the price of individual insurance. If you have a lot of debt and no way to pay it off, declaring bankruptcy can be your best bet. Our Roach Bankruptcy Center, LLC bankruptcy attorney can assist you in getting out of debt if you lost your job suddenly and without much notice.

  • Unexpected Emergencies 

People may be forced into bankruptcy by natural calamities like tornadoes, hurricanes, or earthquakes, or by theft resulting in property loss. It’s possible for victims of a natural disaster or any unexpected emergency to experience an abrupt change in their way of life. For some time, they might not be able to work.

Many people are unaware that specific insurance is necessary to cover damages in the event of certain natural disasters, such as earthquakes. If they don’t have insurance, they might then have to start over from scratch after a natural calamity. 

Contact Our Kansas Bankruptcy Attorney in Missouri! 

The reasons above are frequently combined by many people, which can make their situations even more challenging. Our team at Roach Bankruptcy Center, LLC, is here to assist you, whether you are dealing with a divorce, foreclosure, or a debt from credit cards that is out of control.

For more than 15 years, Roach Bankruptcy Center, LLC, has provided divorce and bankruptcy legal services throughout Missouri. We offer prompt, cost-effective legal services. We have successfully filed over 2,000 cases using our in-depth knowledge of bankruptcy law, assisting individuals and families in reaching their financial objectives. 

If you are currently considering bankruptcy to achieve debt relief, contact our Missouri bankruptcy law office right now to arrange a free initial consultation.

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