Common Ways that Families Fall into Bankruptcy
According to the United States Courts system, more than one million bankruptcies were filed during the year of 2010. There are a number of reasons why individuals find themselves filing for bankruptcy—consider this overview on some of the most common of these for more information.
Loss of Income
One of the main reasons that many families are forced to file for bankruptcy is the sudden loss of an income. Losing a job is a devastating experience, especially when trying to support a family. Many families in which one or both parents become unemployed are unable to pay their bills, falling deep into debt with no way of making their monthly mortgage or car payments. When stacked against the overall cost of living, loss of income often leads to bankruptcy.
Medical Expenses
Another common reason why so many families fall into bankruptcy is unexpected medical bills. This can be either the result of a single bout of life-threatening illness or injury that requires a brief period of inpatient care, or ongoing medical costs due to a chronic illness such as cancer.
Excessive Credit Card Debt
Credit cards can be a great tool when used properly—but excessive credit card use often makes it difficult to keep up with monthly payments. Families who rely on credit cards to pay for everyday expenses often find themselves unable to overcome mounting debt, which frequently leads to bankruptcy in addition to a poor credit rating.
Changes in Family Dynamic
Families who experience a major change, such as a divorce or death, find themselves facing unexpected financial responsibilities. Without the proper planning, changes in a family’s normal dynamic can lead to financial ruin for all members.
If you’re considering filing for bankruptcy, then you’ll need the very best bankruptcy law firm by your side. Let the experienced attorneys at Pinkston & Pinkston, P.A. help you with the filing process by calling (888) 592-0158.
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