Most people strive to meet their obligations and live within their means, but unforeseen circumstances outside of your control can cause financial problems from which it may be impossible to recover. The compounding effects of a temporary job loss often leave borrowers behind on their mortgages, struggling to make even the minimum payment on credit cards, and unable to afford basic necessities. In these situations, speaking with a bankruptcy attorney may be the only way to regain your financial footing and start again.

3 Common Causes of Bankruptcy

1. Medical Emergencies

Anyone can fall victim to a sudden illness or catastrophic accident at any time, which threaten your finances as well as your health. Even if the medical bills themselves do not directly result in bankruptcy, the financial problems associated with illness often make it impossible for even the most fiscally responsible borrowers to pay their bills on time. On average, most people who are hospitalized experience a dramatic loss of income, reduced access to credit, and other factors that contribute to bankruptcy.

2. Divorce

During a divorce, separating couples take responsibility of joint debts as well as marital assets. However, if your former spouse fails to pay their portion of the marital debts after the divorce, the creditor may initiate collections activity against you instead. Paying credit cards, signature loans, and other debts while establishing a household on a single income is out of reach for many recent divorcees, so many have no choice but to consult with a bankruptcy attorney.

3. Job Loss

The loss of a job can be financially devastating, even for those with comfortable incomes and adequate savings. Even temporary unemployment can leave your mortgage or auto loan in arrears, with past due balances you can’t afford when you begin working again. In these cases, a bankruptcy attorney may suggest restructuring under chapter 13, which allows you to make up arrears through a court-managed repayment plan.

No matter what the source of your financial difficulties may be, the Anderson Law Firm in High Point, NC, will provide high-quality legal advice you can count on. For over 20 years, they have been helping struggling borrowers reclaim their lives from unmanageable debt with debt relief solutions tailored to their needs. For an overview of their services, visit their website now, and follow their Facebook for more advice and legal tips. To schedule a consultation with a bankruptcy attorney, call their offices at (336) 431-7336.

The information contained in this site is for general guidance on matters of interest only. The application and impact of laws can vary widely based on the specific facts involved. We are a Debt Relief Agency. We help people file for Bankruptcy Relief under the Bankruptcy Code.