Decicing to file bankruptcy is never an easy choice. Whether you decide to file, make sure that you have exhausted all your options in
trying to resolve your debts such as contacting the creditor or collections to work out an affordable payment arrangement or consolidating your debt through a non profit agency. If you feel you have
exhausted all your options, bankruptcy may be the right choice for you.
Statistics show that a majority of bankruptcy filings are not the result of reckless or frivolous spending. Rather, the three main reasons
people file bankruptcy are:
1) Medical Debt From Catastrophic Illness: Most families go through life without financial difficulty until a family member
undergoes a catastrophic illness such as cancer or is injured in a car accident or some type of injury. The problem is due to high costs of medical care and high deductibles for medical insurance. At
the end of the medical treatments, families are left struggling to pay medical bills that they cannot afford.
2) Job Loss. Unlike jobs of the past, companies terminate employees with greater frequency. You might
believe that your job is secure for many years and then you are suddenly let go, saddled with debt from purchasing a home or car and other family expenses. It may take months for you to look for
another job while you struggle to pay your bills.
3) Divorce. It is difficult to maintain the same lifestyle you were accustomed to when you were married. When you were
married, you and your spouse probably shared in the expense of your home, vehicles and other household expenses. Now that you are paying these debts by yourself on your own income, you may not have
the same economic leverage. Furthermore, additional divorce expenses such as alimony and child support continue to burden your income.