Bankruptcy is legal process where you are declaring that you are unable to pay your debts. When people can’t pay their debts at that time bankruptcy is a suitable option for them.

1. TOP SEVEN LEADING SITUATIONS OF BANKRUPTCY

2. Bankruptcy is legal process where you are declaring that you are
unable to pay your debts. When people can’t pay their debts at that
time bankruptcy is a suitable option for them. When people file for
bankruptcy, bankruptcy allows them to start rebuilding their credit faster
and putting them on track for a brighter financial future. According to
US bankruptcy court statics every year in USA 1.5 million people file for
bankruptcy. Bankruptcy is a tool to help people tide over their financial
hardships and this should never be taken up as a first choice, it needs
to be the last option when all the doors to pay off your debt are closed.
An experienced and skilled bankruptcy lawyer Mr. Brian Linnekens
shares a few reasons and situations why people go bankrupt. You need
to know these reasons of bankruptcy so that you can try and steer clear
of these situations and ensure that you don’t have to ever file
bankruptcy. After knowing your financial problems you can easily
control your debts before they take control of you.

3. Job Loss –
Sometimes people might lose their job and in that time frame they
might not be able to pay off their debts and credit card bills which
might also lead to depression which further results in the piling up of
the already accumulated debts. Also decreasing salary is a big factor
in increasing financial hardships. The end result is that more and more
people are applying for bankruptcy. Unemployment is another big
factor in the rising cases of bankruptcy. Watch out for any career and
market changes that might affect you adversely.

4. Divorce –
Divorce is quite an emotional time for both partners. Divorce is an
expensive process because of high attorney fees, court costs, child
support and other hidden costs, that are hard to identify, but never fail to
show up. At this time it is really important that you need to hire an
experienced and skilled bankruptcy attorney who can help you manage
and eliminate your debt in the most feasible way possible in case you are
left with no option but to file for bankruptcy.

5. Unexpected Emergencies –
Emergencies can come anytime like – car accident, home expense,
fire, tree falling on home. These types of unexpected expenses
quickly drain the whole savings of the people and create more
problems to pay other monthly important expenses, bills and loans.

6. Medical Expenses –
Recent studies say 62 percent of people are filing bankruptcy due to
increasing medical expenses. Sometime family members suffer from
medical issues like cancer or accidents. Health insurance plans do not
cover the entire cost since the treatment time may prolong based on the
gravity of the problem. Thus medical expenses shoot up and then some
people can’t pay the already existing debts along with the already
accumulated medical expenses. Better keep an emergency fund handy
which can be used in times of medical emergencies. You can also look
out of an insurance plan that covers the whole family for a sustainable
and large amount of cover.

7. Poor or non-existent Financial Planning –
If your financial planning fails then you have to face numerous financial
problems. Managing money is really hard, if you don’t pay your loan
installment and bills on time then creditors will start hounding you with
phone calls, messages and mails. To stop creditor harassment you
need to file bankruptcy. Better have robust financial plans in place and
make sure to have a plan B is the main plan fails to avoid filing
bankruptcy.

8. Student Loan –
Most students are unable to pay their loans timely. Whatever loan type if you do not
pay loan installments on time then it will become a problem for you. To avoid
creditor harassment, students generally file for bankruptcy.

9. Avoiding Foreclosure on their homes-
In America 1% people file for bankruptcy in order to avoid foreclosure on their
homes. And some people try to cut down and reorganize debt by filing for
bankruptcy.
Article Resource - http://www.brianlinnekens.com/2018/07/19/top-seven-leading-
situations-of-bankruptcy/