The number of bankruptcy filings in the United States has steadily increased over the last century. And the majority of bankruptcies, by a long shot, are filed by consumers and not by businesses. People declare bankruptcy for a variety of reasons. Regardless of the reason you are filing for bankruptcy, it is best if you hire a bankruptcy lawyer from the Law Offices of Loomis and Greene in Loveland to ensure your legal rights are protected.

Bankruptcy can happen to anyone. In fact, the average person who files for bankruptcy looks a lot like you. They can be married or single, young or old or male or female. Here are a few reasons why someone might have to file for bankruptcy.

Mortgage Debt

We have come a long way since the financial crisis of 2008. However, there are still millions of homes that are in danger of being foreclosed upon. Filing for bankruptcy is one way in which you can prevent a home foreclosure.

Divorce

While it is not generally true that bankruptcy leads to divorce, it is quite true that often divorce leads to bankruptcy. The financial impact of a divorce extends far beyond the initial divisions of money and other stuff and attorney fees. Debt has often accumulated in a marriage and after a divorce, one of the parties find themselves unable to cope with keeping up with the payments.

Many divorcees wind up using their credit cards far too much in the aftermath of a divorce in a vain effort to stay afloat.

Credit Card Debt

There is a common misconception that people who file for bankruptcy due to credit card debt misused their credit cards. People assume that they were big spenders and would go on regular shopping sprees spending money they just didn’t have. While this happens without a doubt, it happens to be the exception and not the norm.

What happens more often than not is that for whatever reason, people rely on their credit card to buy everyday necessities, like food and gas for their vehicle. They even use their credit card to pay utility bills and rent. What starts off as a short-term solution soon balloons into a massive accumulation of debt over time.

Job Loss

Very few people who file for bankruptcy are unemployed at the time of their filing. The majority of them were working or had some other form of income. The reason they have to file for bankruptcy is that they lost their job or had a loss of income due to an illness or another event. They may find work right away, but their income level had dropped significantly.

Economic conditions and illness are often unavoidable and you may find yourself not able to pay the bills.

Student Debt

The average student who took out loans for school will find it takes more than 14 years to pay them off. When you consider what a financial burden this can be, especially over time, it is of no surprise when someone files for bankruptcy in part because of their student loans.

The high cost of tuition makes student loans a necessary evil for many young people.

Medical Debt

A large percentage of people who file for bankruptcy do so because of a medical debt. The major reasons include illness or injury, a medical expense not covered by insurance and missing long periods of work because of an illness or injury.

If you are experiencing any of these hardships or feel you need to file for bankruptcy for any other reasons, give the Law Offices of Loomis and Greene a call and schedule an appointment.