How Did I Get Here? 5 Common Causes of Bankruptcy

It’s perfectly natural to look back on the circumstances that led to your filing bankruptcy and wonder where you went wrong. However, at the end of the day, you have two choices: beat yourself up over it and wallow or learn from the past and start to rebuild your life. The first step in the process is to secure the services of an experienced and knowledgeable bankruptcy attorney to advise you and help hasten the process.

It also helps to realize that you’re not alone and that hundreds of thousands of people each year file for bankruptcy for common issues. Some of the top causes of bankruptcy include:

Divorce and Marital Separation
Defaulting on joint debt, acrimonious property disputes, legal fees and loss of income are common parts of the divorce process and can easily land either party in financial peril. The longer the process drags, the more money is likely to be lost on both sides that other causes of bankruptcy.

Student Loans
College loans have become one of the chief debt issues in the country with Americans currently owing over $1 trillion in student loans. It’s become common for new graduates to default on their student loan debt because of their inability to get a job after graduation. These loans now account for approximately 15,000 bankruptcies per year. Unfortunately, students loans are difficult to wipe out with bankruptcy. However, once you clear other debt you may be able to pay back what you owe on the student loans.

Unpaid Medical Debt
Accounting for 62 percent annually, medical debt is without a doubt the leading cause of American bankruptcies and affects the underinsured as well as the uninsured. An unexpected hospital stay can cost thousands of dollars and ignoring these bills can cause your credit to plummet while subjecting you to costly lawsuits.

Home Foreclosure
For far too many, it becomes necessary to file bankruptcy in an effort to simply avoid foreclosure. Filing an emergency petition can at least delay the process, buying you some more time to catch up on your mortgage debt.

Other Lifestyle Factors
Loss of a job, poor spending habits and unforeseen expenses are also contributors to the descent into financial hardship. Regardless of how one falls into bankruptcy, it’s important to remember that it’s not the end of the road, by any means. In fact it can be a chance to rebuild and start over. Without the right representation, however, the process can quickly become confusing, drawn out and problematic.

Let the skilled bankruptcy attorneys at Garland & Mason, L.L.C. guide you through the bankruptcy process so you can quickly move on with your life and start rebuilding your financial future. Contact us today so we can get started.

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