|Why People File Bankruptcy|
|Written by Administrator|
Are you like millions of other people who are struggling to make ends meet?
Are you constantly worrying about how you are going to pay the bills? Are you and your spouse fighting about money? Are you curious what a bankruptcy filing can do for you?
You may have exhausted all other options, but bankruptcy may provide the debt relief that you and your family have been looking for. Learn the reasons why people file for bankruptcy and if you will qualify.
Credit Card Debt & BankruptcyCredit card debt is one of the major reasons that people end up filing for bankruptcy. In today's society, it is too easy to make purchases with that little piece of plastic. Unfortunately, by the time the bill comes in the mail, many folks are surprised how many times they have bought something on credit in the last month. Add a handful of other cards, and it does not take long to have more bills than you have money.
Unfortunately, with rising unemployment, coupled with the higher cost of the basic necessities, many families are just trying to get by, until the economy improves. After a few trips to the grocery store, cards can be quickly maxed out.
The great American dream is to have a good job and a home; however, if the boss even cuts back your hours, the mortgage becomes beyond financial reach. Even people who have managed to keep their jobs are on the brink of foreclosure because of adjustable-rate mortgages that have skyrocketed their payments. What seemed like a good deal when the papers were signed has now become a financial nightmare.
Before things get out of hand, consider talking with a local bankruptcy attorney who may be able to explain the law and how it pertains to your situation.
Job LossThanks to a troubled economy, millions of people are now out of work. Even if it is possible to file for unemployment, the payments are only a fraction of what a former job paid. It is meant to get you by, until another income opportunity become available, but it is not enough to meet all of the monthly bills.
In truth, most people are only a paycheck away from financial troubles. When times are good, it is easy to stretch the finances to support the bills. But, it only takes one missed paycheck and you get behind. Catching up can be virtually impossible.
Illness or InjuryEven with insurance, illness and injury can destitute a family in no time at all. For example, the costs for cancer treatment can quickly become astronomical. Communities and friends have fundraisers to help offset the costs. Families sell off everything in the house that has any value and is not vital to survival.
The problem is only compounded if an income earner is the one who has been sick or injured. He/she may not get any sort of paycheck. Even if there is some sort of disability plan, the checks are only a portion of the salary, and they will not last forever. Oftentimes, the illness or injury has made it impossible for the person to return to work, at least at the full time level. So, the ability to pay the bills will never be the same.
Still Have Bankruptcy Questions?
So, have you been through one of these circumstances, or are you experiencing some other life changing financial trial?