If you have found yourself in financial trouble, you are not alone. You may even know friends or family in Shreveport who are also struggling to make ends meet and have either filed or considered filing for bankruptcy. Throughout the United States, many people view bankruptcy as failure when, in fact, bankruptcy is a tool that can help people like you climb out from underneath excessive debt.
There are many reasons that people go bankrupt from simple mismanagement to high and unexpected expenses. Here are some of the most common financial mishaps that can lead to bankruptcy.
Medical expenses
An accident or illness can easily result in high medical bills that are difficult to pay. Harvard University conducted a study several years ago that indicated an estimated 62 percent of personal bankruptcy filings are due to unpaid medical bills. Furthermore, 72 percent of the people who filed for bankruptcy because of medical expenses actually had health insurance.
Loss of income
In today’s economy, pay cuts and lay offs are not uncommon occurrences. A complete loss or reduction of income can cause individuals to find themselves in a financial crisis. For example, if you have a house payment, a car payment and credit card bills, a sudden loss of income can put you in a position where you are facing foreclosure, repossession and constant calls from debt collectors.
Credit card debt
While some people use a credit card on a daily basis, others keep a card or two for emergencies. Unfortunately, if you are keeping a high balance on your cards or have maxed them out in an emergency situation, you could find yourself in overwhelming debt and unable to keep up with even the minimum payments.
Divorce
Divorce is also a leading cause of bankruptcy. Among lawyer fees, court fees and the loss of a significant amount of your assets, it could become very difficult to manage your finances.
Other common causes of bankruptcy include student loans, unexpected expenses and bad spending habits. If you have found yourself in a position where your debt exceeds your income, it might be time to explore debt relief options. You might be eligible to file for bankruptcy and get your finances back on track.
