These Are the Top Reasons Why People File For Bankruptcy

Margaret, AL–A financial downfall can be caused by a number of different things–a severe illness, a divorce, or even a loss of income. These unfortunate events are known to be costly and interfere with a person’s ability to reach financial stability.

While not all financial hardships signal bankruptcy is on the horizon, there are certain factors that are known to trigger a bankruptcy filing. Let’s have a look at a few.

An accrual of medical debt can sometimes lead a person to file for bankruptcy.

As of June 2022, it was estimated that roughly 100 million adults had healthcare debt. Of those people, 12 percent owed $10,000 or more, reports CNBC (1). It’s no surprise why people today are struggling to afford medical care, some only getting the bare minimum care they require. Between rising healthcare costs and insurance obstacles, it’s no wonder millions of people are struggling with medical debt today.

Now, while some medical debt is manageable, others sometimes find themselves accruing more than they can pay back. And when the debt piles too high, some turn to bankruptcy protection to get collection agencies and medical professionals off their backs. Did you know that medical debt is one type of debt that sometimes qualifies for discharge?

What this means is that if you were approved for Chapter 7 bankruptcy, you could potentially get your medical debt wiped away (i.e. discharged). If your medical bills are piling up and you see no way of settling your unpaid debt, a Margaret, AL bankruptcy lawyer can discuss with you some options that can help.

Overspending is another factor that can trigger a bankruptcy filing.

Some people overspend simply because they’ve developed bad money habits while others are forced to do it just to keep a roof over their head and the necessities coming in. Regardless of why a person overspends, it can become a recipe for disaster (financially speaking).

If you’re spending more than you’re bringing in and have accrued a substantial amount because of it, speak with a Margaret, AL bankruptcy attorney to find out if filing for bankruptcy is a suitable option to consider.

If a serious life event has caused you to fall into debt, bankruptcy might help.

Whether you lost your job or are facing a costly divorce, an AL bankruptcy attorney at Hill, Gossett, Kemp & Hufford, P.C. is here to help you explore some solutions to help you get back on your feet. Although bankruptcy isn’t for everyone, it does have its advantages, and a legal expert at Hill, Gossett, Kemp & Hufford, P.C. would be happy to review with you what these are.

Have questions about this article or a legal concern? Call 800-672-3103.

Disclaimer: No representation is made that quality of legal services provided is greater than the quality of legal services provided by other attorneys.

Hill, Gossett, Kemp & Hufford, P.C. can be reached at:

Moody Office

2603 Moody Parkway, Suite 200

Moody, Alabama 35004

Phone: (205) 640-2000

Website: www.hwhlawgroup.com

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Leeds, AL 35094

Phone: (205) 699-5500

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6441 U.S. Highway 11