Why do people file for bankruptcy? 

Why do people file for bankruptcy? 

On Behalf of | Sep 7, 2021 | Uncategorized |

Unfortunately, people sometimes assume that those filing for bankruptcy have simply made poor financial decisions. They’ve spent more than they can afford, for instance. It’s their own fault that they’re bankrupt and they could have avoided it by making better choices. 

In the vast majority of cases, this couldn’t be further from the truth. When you look at why bankruptcy really happens, you’ll find that most people had no control over it and deserve none of the blame. Let’s consider a few of those reasons. 

Medical debt

Far and away, medical debt causes most bankruptcy cases. It’s just so expensive to get medical care in the United States. Even those who have insurance can accumulate bills they’ll never afford in a very short time. This debt is the most common reason for bankruptcy, and those filing have generally not had anything to do with it. 

Job loss

Job loss can make it so that your affordable budget is suddenly not affordable at all. You haven’t made poor decisions or taken on debt you can’t afford. It seemed more than affordable when you took it, but even losing your income for a short time can be too much. 

Unexpected expenses

You can’t always predict what’s coming. A hit-and-run driver could total your car. A water heater could break and flood your basement. When you have sudden expenses that aren’t in your budget, they may lead to bankruptcy. 

What options do you have?

Bankruptcy isn’t your fault, and it really can happen to anyone. If it happens to you, make sure you are well aware of the legal options at your disposal for debt relief.