Common Causes of Bankruptcy
How Does Bankruptcy Happen?
Every day, thousands file for bankruptcy to get out of a serious debt problem they are facing. This is the result of a serious issue that is affecting bank individual's bank accounts and lives. This is not just a circumstance that occurs without cause, but is one that takes place because of an unavoidable circumstance or as a consequence of an action. Whatever the reason, bankruptcy, is the primary go-to solution for many whose financial states have gone out of control. There many causes of bankruptcy, but they can all lead to the same solution.
The common causes of bankruptcy include:
- Change is Employment Status
- Expensive Medical Bills
- Poor Financial Management
If an unforeseen tragedy has taken place and caused your financial circumstance to become negative, it is important to understand what the initial cause was so that it can be effectively solved. At Joseph P. Doyle, our Chicago bankruptcy lawyer, strongly believes you can fix your financial situation with our legal assistance. Bankruptcy is a solution that can eliminate a large portion of one's debt, no matter what the cause. Below, our Chicago bankruptcy firm has explained the most common causes of bankruptcy in more detail.
Unexpected Job Loss
With the current economy, an unexpected job loss is not an unlikely or rare occurrence. The bankruptcy rate has increased with the rise in unemployment. If a company fails, employees can lose their jobs and leave individuals displaced with large financial obligations that cannot be paid. The loss of a job results in a decreased income and being forced to pay expenses without the proper financial means. If you have been laid off of your job with little to no warning, our Chicago bankruptcy lawyer can help you become debt free.
Termination of a Marriage
Not only is a divorce personally traumatic, but it can also lead to financial problems. When a household is split, the expenses dramatically increase and the income is divided. If either party or both individuals are unable to pay their debts, it can be very difficult to control the expenses that arise. Splitting apart the incomes of two is rarely an easy situation and our Chicago bankruptcy attorney can determine if bankruptcy is the right solution for you.
Illness and injury is not usually an expected situation. When it comes about, however, it must be handled in a diligent manner. Even with substantial health insurance, unexpected medical expenses can quickly get out of control. These situations can be very frustrating for all involved. When taking into consideration the time that must be taken off of work and the loss of income, it is easy to see why a trip to the hospital can result in serious debt trouble.
Mismanagement of Finances
The mismanagement of finances is a cause of bankruptcy that affects many. It is often associated with individuals who have graduated from college and are now using credit without having a clear grasp of the consequences. College loans can cause a problem for young individuals and couples after the grace period has come to a close. Also, decisions to purchase a home or vehicle that cannot be reasonably afforded can damage their financial situation.
Contact a Chicago Bankruptcy Firm
It is important to contact an attorney to begin fighting your debt. We know that your personal finances are important to you and we can provide you with compassionate legal assistance. Our firm knows that handling debt and filing for bankruptcy sometimes means that you cannot stop until you obtain a successful result. We have the knowledge to help you achieve the best outcome available.
Contact us at your earliest convenience for a free case review!