Unfortunately, there has been a negative stigma surrounding bankruptcy for many years. Many people who admit that they may need to file bankruptcy because they are in over their head financially may feel a sense of shame regarding their individual situation. However, research shows that the ten most common reasons that people end up filing for bankruptcy have a top three that is largely unrelated to a person’s direct activity.
The leading reason for people to file for bankruptcy is still medical expenses, according to a Harvard University study that indicates that medical expenses make up around 62% of personal bankruptcies filed across the country. Many of those individuals who filed for bankruptcy as a result of catastrophic medical expenses did have health insurance. Coming in at number two and number three on the most common reasons why people file for bankruptcy were reduced income and job loss. Since companies are cutting down on many of their expenses, this could lead to reductions in bonuses or major pay decreases for employees specifically.
Employees may be forced to file bankruptcy if they find themselves in over their heads. Finally, a job loss represents a significant financial disruption for a person as well as his or her family members. A job loss, when someone doesn’t have appropriate savings and is not able to reproduce their income quickly with a new position, could lead to a person filing for bankruptcy. It can very overwhelming to file for bankruptcy if you don’t have the insight of an experienced attorney who is helping you navigate the situation.
The right lawyer can make a big difference in the outcome of your case, as well as the confidence and peace of mind you feel in the duration as well. Consulting with a lawyer who cares about you and the best possible outcome for your family can give you a major reprieve on these concerns.