The Most Common Causes of Gilbert Bankruptcy
Most people don’t just spend haphazardly and then file for bankruptcy to get out of the trouble they’ve caused. Instead, most people find themselves in circumstances that they are tried to prevent or did not expect when they finally file for bankruptcy. They may have tried to work extra, to cut back on expenses, or to borrow from friends and family to solve their troubles before they turn to bankruptcy.
Unfortunately, bad things happen to good people. Filing for bankruptcy always a sign of a personal failing. Here are some of the most causes we see for people to file for bankruptcy in Gilbert:
You may have been working at your job for decades. Unfortunately, that doesn’t make you safe. You can still lose your job without notice. The company may be looking for ways to save money, and your fat salary and generous benefits package will start looking pretty good.
Ideally, we would all have an emergency fund that would cover us for at least six months in case of an unexpected job loss. However, few of us have any savings at all, let alone enough to get us through an unexpected job loss. In such a case, many people would turn to credit cards to get by. Filing for bankruptcy in Gilbert can help many get out of the trouble caused by their job loss.
Injury or Illness
You may be out of work for a long time if you fall seriously ill or are severely injured. If you do not have the savings to cover that lost income, you could fall seriously into debt. In addition to lost wages, you may also be faced with thousands of dollars of medical debt.
Declaring bankruptcy may be able to rid you of the debt you incurred while you were not working, as well as the medical debt you may have because of your injury or illness.
When you are married, your lives and your finances are combined. When you get divorced, you must adapt to a single life again – and a single income. Yet, by that time, you may have a home and a lifestyle that requires two incomes to support. You may also have children who have more needs than you can provide on one income.
You may try to cut back your expenses or increase your income after a divorce, but you may not be able to do it quickly enough before the debts start to pile up. Your legal fees may make it even harder to get your finances under control, and that may lead you to need to file for Gilbert’s bankruptcy.
Perhaps your spouse dies. You will suffer the same financial losses as you would with a divorce. You may even experience more. If your spouse dies with debts, you will still be responsible for paying them, but you may have only one income and no additional assets. Your spouse may have also been very ill before dying, which will leave you with a lot of medical debt.
Bankruptcy may be able to help you get out of the financial abyss that you find yourself in after the death of a spouse. Or it may help you to get your finances back under control so you can better manage your debts.
Bad Financial Habits
We all make bad choices sometimes. When it comes to bad financial choices, we may not even realize how bad they are until you find yourself in serious debt. That doesn’t mean that you are unintelligent or irresponsible. But it does mean that you need to figure out a way out, and bankruptcy may be the debt solution you need.
Experienced bankruptcy lawyers have seen these scenarios many times. It is important that you recognize that if you find yourself in these circumstances, you should not view bankruptcy as a failure but as an option for getting the debt relief you need. Bankruptcy is a legal right offered to those who need it. You should not eschew this option because you feel personally responsible for your circumstances. Talk to a Gilbert bankruptcy lawyer about how you can get the debt relief you need.
Gilbert Bankruptcy Lawyers can help you understand your options and whether bankruptcy is the right choice for you. Our attorneys represent individuals in Chapter 7 or Chapter 13 bankruptcy, and they represent businesses wishing to file for bankruptcy also. One of our bankruptcy attorneys will review your finances and help you understand the right option and how it can help you. Contact our Gilbert office to talk with one of our bankruptcy lawyers today.
Gilbert Bankruptcy Lawyers