End Up Bankrupt

5 Reasons You Could End Up Bankrupt

Given the number of crises that we have experienced over the past decades, as well as the situation that has just recently developed in the country in connection with the pandemic, we all have a constant fear of financial problems. However, anything can happen in life. It may be that you find yourself in such a difficult situation that officially declaring yourself bankrupt may be the best solution.

Let’s see why do people become bankrupt of their own accord and when it is even possible. So, experts say that there are only 5 main factors that push a person to make such a difficult decision. Our business advice service has collected them in a separate list especially for you:

1) Costs of medical procedures

This may seem unexpected to you if you are healthy and have never faced payment for various operations, medications, and procedures, but expensive treatment is the number one reason people become bankrupt. More than half of those who apply for their insolvency to the state are sick people who have to make ends meet due to the fact that health insurance does not cover the costs of their illness or unexpectedly received a terrible injury, and debts continue to accumulate and already amount to hundreds of thousands of American dollars. It may be that your loved one needs treatment, and because of this, you can also get into serious debt.

If this is, unfortunately, your case, then you will have no problem with how to become the bankrupt USA. You only need to write a corresponding statement.

 2) Dismissal or layoff

What causes Americans to become bankrupt in second place?

The next most frequent reason among the inhabitants of our country may be the loss of a job. This is expected for such lists. If you are a narrow-profile specialist and in addition to the position that you previously held in your district there are no more vacancies, then dismissal, layoffs, or even retirement can become a huge financial collapse for you.

If you suddenly lose your place and earnings for any of the reasons, and you do not have the funds accumulated for a rainy day, then your life can really become very difficult.

Oftentimes, people experiencing such problems from hopelessness go into credit card debt, which supposedly must be repaid when they return to work. If this does not happen for a long time, then collectors and even subpoenas for proceedings may come into your life along with a lack of money.

3) Debt on loans

This reason flows smoothly from the previous one since the lack of work, salary, and savings can lead you to the bank to get a new and new credit card or loan. If you also get sick with something that your insurance will not cover, then the collectors will turn to your nearest circle. If your family and friends do not want or will not be able to give a loan for you, then you will have only one very unattractive option – to declare yourself bankrupt. We understand how unpleasant and humiliating this is, but we need to go through it in order to return to normal life again with the help of the state.

4) Unexpected expenses of any plan

As a rule, this item concerns problems with the home, personal transport, maintenance of an elderly relative, etc. Most often, people massively declare themselves bankrupt after various crises and depressions, fires, and natural disasters.

The hurricanes that periodically sweep the United States sometimes trigger waves of bankruptcy filing. Insurance will, of course, partially reimburse your losses, but do not assume that it will be fast and that you will not have to take the rest of the amount from somewhere else. In addition, until your own home is restored, you will have to rent something else, which can also cost a tidy sum.

5) Divorce proceedings

Last, but not least, item. A situation complicated by emotional distress can also lead to your complete bankruptcy, since the cost of lawyers during a lengthy divorce process can deplete all your cash flows, drink all your funds and take away all your assets.  To the alimony, the issue of the maintenance of your soul mate, and the complex division of property, there are also not cheap expenses for maintaining your own life. But living together and dividing expenses in half is usually much easier than dealing with everything alone.

If after reading you are wondering about do you become homeless after going bankrupt, then we will reassure you. The state extends a helping hand to citizens in a critical situation. If you have a desire to get out of debt, you must first declare yourself bankrupt, and then you will be provided with a lawyer who deals with bankruptcy issues.

It’s not easy, don’t expect it to be easy, but if you’re deeply in debt, this is the only way you can get the opportunity to pay off your debts or get a grace period to get back to normal. We wish you every success!