Bankruptcy is often associated with reckless spending. While this can certainly be a contributing factor, the reality is that it plays no part in most bankruptcy cases.
Millions of Americans are currently struggling just to pay their bills, and this is through no fault of their own. It’s important to engage in an impartial assessment when considering bankruptcy. Outlined below are two of the most common causes:
1. Job loss
The job market can be highly competitive. On top of that, companies are constantly looking for ways to cut costs. Unfortunately, laying off staff is often the first method of doing this. This leaves hard-working people out of a job and struggling for income. Over a sustained period, people may have no choice but to take out loans for survival.
Anyone can find themselves in these circumstances and bankruptcy may be the only way of addressing the debts.
2. Health issues
Healthcare doesn’t come cheaply in the U.S. Insurance policies often depend on people being in gainful employment. With unemployment figures being in the millions in the U.S., this leaves a significant number of people unable to pay for even basic medical care.
In an emergency, this can leave people with the choice of being saddled with debt or not having the medical treatment they need to stay healthy. It’s difficult to blame people for choosing the former in such circumstances.
There is no shame in bankruptcy. It is a viable option for those who are in financial trouble. That being said, it’s a big decision that requires careful consideration. Seek legal guidance to find out more about the help available to you.
