7 Most Common Reasons to File Bankruptcy

One of the things that can create a great deal of stress in life is when you can’t pay your bills. There may not be much else that causes you as much anxiety like this. However, you do have options, and it’s ideal to file for a legal status known as bankruptcy. If you qualify for this, you may be able to have many of your debts discharged.

There are times in life that may be much tougher than others. Not having the money to pay your bills could be one of these reasons and may have you worried about your future. However, taking control of this situation may be in your best interest. It’s better to do something now than waiting too long to get the help you need financially.

The best way to regain control of your life and work to get your financial situation back in order could depend on filing bankruptcy today. The sooner you do get started on this process, the faster your results will be.

Here are some of the most common reasons to file bankruptcy:

1. Divorce

There’s nothing that may cause you more financial issues than ending a marriage. It can be hard to get by on just one income, and you may find it nearly impossible to do so in the beginning.

Divorce occurs frequently, and if you’re in this situation, you may want to get some financial relief. It’s not uncommon for many people that are ending a marriage to file for a bankruptcy.

2. Job loss

Did you recently lose your job? If so, this could be one of the most trying times in your life. You may not have a clue how you’re going to pay your bills.

Dealing with a job loss can be a trying situation and working to keep your head above water can be difficult. Filing for bankruptcy may be the best thing you do and could make a tremendous difference in your overall quality of life.

3. Fresh start

Are you looking to start over with your finances and don’t know what to do? You can do this by filing for bankruptcy.

Dealing with a tremendous amount of debt that’s out of your control can be tough. It could be in your best interest to simply start your financial life over and begin again.

If you’re successful in filing for this legal status, your previous debts may be wiped clean. However, it’s ideal to know which ones may not be fully discharged.

4. Credit card debt

It can be a way to easy to charge things that you don’t have to buy or need. Spending money on things may make you feel good until the bills start piling up on you.

Putting shopping trips on your credit card is less than ideal and may end up costing you a lot in the long run in interest. If you don’t see any way out of your credit card debt, it may be time to file for bankruptcy.

Doing this could allow you to have a great deal of financial relief and allow you to feel better about life in general.

5. Medical bills

If you’ve had to endure a severe medical condition, this can be hard on you. It may be essential to find a way to get rid of bills that you can’t pay to get the necessary type of medical treatment. However, getting better should be foremost on your mind.

Taking time to file for bankruptcy may well be the only way to get the help you need. Medical costs can simply be overwhelming, and if you can’t pay these, it could be time to file for some legal assistance.

6. Home foreclosure

Is your home getting ready to go through foreclosure? If so, this can be a scary time, and you may not know what to do.

It can take a long time for this process to be completed. Home foreclosures can be complex and very complicated.

However, filing for bankruptcy may be helpful if you’re in this situation. It may be in your best interest to speak to an attorney about doing so when you can no longer make your house payments.

7. Car repossessed

The last thing you’ll want to do is have your car taken away from you. This is likely to be the only way you can get around town and drive where you need to go.

Remaining independent is very important, and having a vehicle is the key to doing so. If you’re in danger of having your car taken away from you, it’s essential to take action fast.

You may avoid this situation from arising if you file for bankruptcy. Doing this could help keep your vehicle and allow you to have many debts discharged.

About Author

Justin is a journalism student from Ottawa, Canada. Since a young age, he has felt a passion for writing along with a knack for asking curious questions, which guided him into his current path today.