Why Do People File for Bankruptcy?

 Posted on June 09, 2023 in Bankruptcy

The 2008 financial crisis did result in a silver lining, as challenging as the situation was for corporations, families, individuals, governments, and communities alike. It allowed the public a greater understanding of the reality that even the most hard-working and financially-conscious individuals are often only a few rough-pay cycles away from the risk of financial devastation. It has been this widespread realization that people can fall on hard times through no fault of their own that has largely eliminated the stigma associated with taking advantage of the opportunity to file for bankruptcy.

Most Bankruptcy Filers Are Responsible

The most common reasons that individuals file for bankruptcy have nothing to do with financial irresponsibility. Instead, challenges such as medical emergencies or significant medical developments that require extensive treatment, unexpected job loss, economic conditions outside of an individual’s control, the death of a wage-earning loved one, and other challenging circumstances lead most filers to seek bankruptcy protection.

Certainly, there are cases wherein someone has spent beyond their means, assuming that the system will fix their missteps. Yet, such cases are surprisingly rare. Most filers do all they can to maintain responsible spending habits and resolve their financial challenges without assistance before deciding that filing for bankruptcy is the best way forward.

Connect with a Client-Focused San Antonio Bankruptcy Lawyer for Personalized Feedback

If your financial situation has become overwhelming and is unlikely to stabilize any time soon, it is going to be important for you to seek debt management and debt relief solutions proactively. If you give into the temptation to simply ignore your unpaid accounts, you can further damage your financial stability, your credit score, and your ability to “bounce back” from your current struggles effectively.

A good way to start exploring your rights and options under the law is to speak with a reputable San Antonio, TX bankruptcy lawyer. In doing so, you may learn that filing for bankruptcy is a great option for your circumstances or you may learn that a particular bankruptcy alternative will better meet your needs. Either way, by scheduling a free, no-pressure, confidential case evaluation at the Law Offices of Chance M. McGhee, you will benefit from informed feedback that will allow you to make informed decisions about the opportunities available to you at this time. You do not need to manage your current financial stresses on your own. You can call 210-342-3400 to schedule a consultation or you can reach out online. Our firm looks forward to hearing from you.

Source:

https://www.investopedia.com/financial-edge/0310/top-5-reasons-people-go-bankrupt.aspx