What are the Most Common Causes of Bankruptcy?
This blog highlights some of the most typical reasons for financial difficulties that ultimately result in bankruptcy, however, this list is by no means comprehensive. Bankruptcy can occur for a variety of reasons, some of which are totally out of the debtor’s control. Visit this page, if your search list somewhat looks like “bankruptcy lawyer near me”. Here are some usual reasons for bankruptcy:
Loss of income:
Managing all the bills might become challenging, if not difficult if the household income is significantly reduced. Loss of employment or income is among the most frequent factors. This usually implies losing a job totally or drastically reducing one’s working hours. When one spouse loses their job or reduces their hours, it can sometimes lead to a decrease in the overall household income. Even though your monthly income may have decreased due to the divorce, your expenses might have remained the same.
When a person has a significant injury, the cost of medical care is frequently increased by the financial loss (or, in some cases, loss of employment) incurred while the person is off work healing from the accident. Medical debts are another typical factor in bankruptcy. Even co-pays for specialized or emergency care can now run into the tens of thousands of dollars, and for patients without insurance, these required doctor visits can occasionally cost people thousands of dollars.
Consequences of not being able to pay debts:
There are several ways for creditors to collect debts. Most often, if your payment is way overdue, the creditor may contact you via phone and threatening letters about your account. Many creditors will sue you to recover the debt if that doesn’t work. Your wages may be seized or turned over to a collections agency if they are granted a judgment in their favor. If any of these factors—or perhaps others not included above—led to your inability to pay your debts, you might already be the target of collection efforts by creditors or the lawyers acting on their behalf.
If any of these circumstances have occurred to you, or even if there is another reason why you believe that you are in financial hardship, an experienced Montgomery bankruptcy attorney may help you assess whether legal services will help you with your financial situation. A lawyer will also work to create the most favorable conditions for their client’s success.