Top Seven Leading Situations of Bankruptcy

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Top Seven Leading Situations of Bankruptcy
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Bankruptcy is legal process where you are
declaring that you are unable to pay your debts.
When people cant 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 dont have
to ever file bankruptcy. After knowing your
financial problems you can easily control your
debts before they take control of you.
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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.
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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.
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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.
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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
cant 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.
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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
dont 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.
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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.
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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/