If you are an American who has been financially struggling, you are far from alone. Every year, thousands of individuals file for bankruptcy due to an inability to repay expenses.
Before filing bankruptcy Weymouth, you may have some hesitation. This is normal. Despite the many benefits that bankruptcy can offer, there is sometimes a lot of misunderstanding and guilt about filing. However, the fact is there is no right or wrong reason. Check out the top four motivations for bankruptcy petitions in the United States.
- Medical Bills
The number one reason for Chapter 7 and Chapter 13 bankruptcies in the US is due to medical bills. With 50% of Americans now carrying medical debt, this makes sense. Between hospital visits, medications and physical therapy, costs can quickly soar beyond the average household budget.
- Excess Credit Use
Sometimes, people do not practice the best budgeting skills for a variety of reasons. As result, their debts end up being more than their incomes. As a result, another big reason for bankruptcy is excessive credit use. High-interest rates also play a role in this.
When couples go through a divorce, it can significantly impact one or both parties’ credit and finances. If there is a primary breadwinner in the household, it is not uncommon for the separation to lead one or both spouses to file for bankruptcy.
- Job Loss
If you have ever unexpectedly lost a job, you know that it can be a financially devastating experience. This is especially true if you do not have emergency savings as many Americans lack. For this reason, another top bankruptcy reason is job loss.
Although people sometimes have many misconceptions about filing for bankruptcy, there are many valid reasons why Americans make the personal decision to exercise the right to do so.