Filing Bankruptcy: Typical Causes for Doing So

Whether you like it or not, filing bankruptcy is sometimes necessary in order to get a fresh start with your financial standings. Reaching this point can happen from a combination of factors and tends to differ from person to person. It may sneak up on you out of nowhere or finally strike after a period of subtle clues. Regardless of how or when you go bankrupt, there are some significant events that have been known to cause a lot of people to lose their money. RGG Law decided to take a look at some of the most common reasons people have to file for bankruptcy.

Unemployment

It’s easy to have no money when you don’t have a means of earning it. That’s why losing a job is one of the most common ways people end up bankrupt. This can be especially true during periods of structural unemployment, where the overall health of the economy (or lack of it) can cause people to be jobless for long periods of time. If you end up unemployed, our bankruptcy lawyers suggest keeping a tight budget and cutting down on unneeded expenses. Otherwise, you could quickly end up filing for bankruptcy.

Medical Bills

Let’s face it: Getting medical help can be extremely costly, especially if you have had repeated surgeries or other forms of treatment. The high cost of healthcare has, therefore, lead many people to go bankrupt, leaving them in a seemingly hopeless position. If you do not attempt to manage your finances during this situation, then you can find yourself filing bankruptcy in a matter of time.

Divorce

Separating from your spouse can be a drawn-out and expensive process. Between the lawyers and the agreement of how assets will be divided, you may end up with less money than you could have ever initially imagined. What’s more, if you are living on your own after a divorce, you will find yourself handling expenses by yourself that you were otherwise used to doing with your partner. Divorce is sometimes an inevitable process that needs to happen, but it is important to stay on track of your finances so that you do not end up filing bankruptcy.

Not Managing Credit

One of the easiest and most common ways we see people find themselves filing bankruptcy is because of an abuse of credit. Far too often do people spend money that they don’t have, leaving them in a troubling situation to deal with when their bill comes in the mail. Repeating this process can lead to loads of debt and some angry letters from various companies, so it is highly suggested that you understand how to properly manage credit.

Contact RGG Law for More Info on Filing Bankruptcy

At RGG Law, we want to help you get back on track to financial stability. If one or more of these events have led you into debt, then contact our bankruptcy lawyers at 417-864-4700 for assistance on what is best for your situation. Sometimes filing bankruptcy is the best option, and our staff will help you through every step of the process to make sure you get the help you need.