Top 3 Reasons for Filing for Bankruptcy

Top 3 Reasons for Filing for Bankruptcy

In the United States, Americans file for bankruptcy for numerous reasons. Despite common myths about the disadvantages of doing so, bankruptcies offer thousands of individuals financial freedom from drowning debt every year.

If you are considering filing for bankruptcy Everett WA but you have concerns, you are not alone. Many people hesitate to approach bankruptcy because of the misconceptions that they have heard. With that said, check out these top three reasons why people file. Some of them may surprise you.

1. Health Care Costs

As the number one country in the world for high medical bills, hospital expenses lead to more US bankruptcies than any other cause. When serious illness occurs, it can easily lead to a loss of thousands of dollars in a very short time. Often, this leaves families without many options to cover other living necessities.

2. Unexpected Job Loss

Another reason people end up filing for bankruptcy is because of an unexpected job loss. Whether a business closes or an employer simply terminates people for a variety of other reasons, the results are often similar to those who face unexpected medical bills.

3. Divorce

When two people marry, it often means that they combine their finances. As a result, separation often complicates financial matters. In many cases, one spouse’s bank account suffers more than the other’s, and that person ends up with unmanageable debts they can no longer pay on one income.

Despite the negative things you may hear about bankruptcy, the truth is that people end up filing for countless reasons. Often, difficult financial situations occur because of no fault of the petitioners. As such, you should let go of previously held beliefs about bankruptcy and why people end up filing. If you are struggling with debt, it can be a smart path to financial freedom.

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    About the Author: Bill K. Pasko

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