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Why do people file bankruptcy?

There are many reasons why a person files a bankruptcy. While those outside the process may believe that most who file do so because they are profligate with their money, the reality is it is typically some crisis or hardship that causes bankruptcy.

For many, it can be an accident or development of a medical condition that causes their arrival at the courthouse doors to file a bankruptcy. Perhaps they were injured and have run up significant healthcare costs, including hospital charges, tests, doctor's bills and prescription medication.

If they have inadequate or no health insurance, they can quickly find themselves overwhelmed with medical debt. If the medical condition or injury means they cannot work, they not only have to deal with the expense, but with the lack of income.

For others, the crisis may be a divorce. Where a family may have been getting by when they were together, having to set up two households may be too much and it can set in motion a cascade of events that can force one or both of the former spouses into bankruptcy.

Job loss is another trigger event for bankruptcy. In Florida, which suffered after the real estate bubble burst, many of those in the construction and other related industries saw their jobs evaporate along with the housing market. Many lost their homes when they could no longer afford their mortgages.

Many believe they would never file for bankruptcy protection. But if you are struggling from month-to-month to pay your bills and are falling further and further behind, you may long for relief from incessant collection efforts. Bankruptcy can provide genuine relief.

Our law firm can help you choose the type of bankruptcy that will best serve your needs and you can begin to quickly realize the economic benefits to being freed from overwhelming debt.

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