Filing bankruptcy is something no one wishes to happen. However, bankruptcy can be a very necessary action to take in order to relieve your debts. In the case of Chapter 7 bankruptcy, many of your assets are liquidated in an effort to make amends to your financial obligations. This process essentially wipes your slate clean in a matter of months, creating a fresh path with your money. So how do people get to the point of having to take such an action? Many unexpected events contribute to debt, but there are a handful of occurrences lead people toward bankruptcy more often than others. Groce & DeArmon, P.C. decided to showcase some of the most common reasons people are forced to file Chapter 7.
Job Loss
One of the most common reasons people end up in debt and have to file Chapter 7 bankruptcy is because of their lack of employment. When you have no regular income, it can be easy for your money to diminish with the constant bill payments and a plethora of other expenses that are necessities in your life. Someone may say, “Get a job,” but this is more difficult than people think when the economy is at a low point or the person has a disability preventing them from working. In other words, once you have lost a job, you’re put in a tough situation for avoiding debt.
Lack of Credit Responsibility
When people have no money to cover their expenses, they’ll often turn to credit to handle these urgent payments. However, they’re just spending money they do not really have. Not utilizing credit responsibly can quickly drive you into debt and cause you to file for Chapter 7 bankruptcy. Groce & DeArmon, P.C., strongly suggests being aware of the consequences of credit and to only use it for emergencies, if at all.
Related Post: How to File for Chapter 7 Bankruptcy
Medical Expenses
Heavy medical expenses can come in many different forms: unexpected injuries, important surgeries, or special treatments. Despite the undeniable necessity for some of these procedures, their costs are typically outrageous and can drive people toward debt in a short amount of time. People who file for Chapter 7 bankruptcy as a result of high medical bills usually do so because they don’t have health insurance.
Divorce
Yet another common reason people end up filing for Chapter 7 bankruptcy is because of the aftermath of a divorce. Between dividing your once-shared assets with your spouse and hiring a lawyer, the expenses can quickly pile up. And when you start handling expenses on your own following the separation of your partner, the stress to cover all your costs can become a burden that is too large to tackle.
Related Post: How Does Divorce Affect Your Chapter 7 Bankruptcy?
Contact Groce & DeArmon, P.C. for Chapter 7 Bankruptcy Aid
Bankruptcy can sneak up on you when you least expect it, and that’s why it’s important to be cautious when handling these common events that are influencers of debt. If you are in need of Chapter 7 bankruptcy counseling, then contact our bankruptcy lawyers at 417-862-3706.
