What Are the Top 3 Reasons People Are Filing for Bankruptcy in Tulsa, Oklahoma?

Bankruptcy has always had a bad reputation. People want to stay away from it as long as possible, yet many fail to understand that despite the whispers about those who decide to file for bankruptcy, the primary reason for filing generally has nothing to do with reckless spending habits, but is often associated with unexpected expenses. Many also ignore the fact that there are actually upsides to the bankruptcy filing process, and that while people understandably don’t want to be in a position where they have to file, their situation can ultimately be helped through the process. If you are considering filing for bankruptcy in 2022, we suggest meeting with an experienced bankruptcy attorney in Tulsa, Oklahoma or “Attorneys Near Me” prior to filing. 

Reason #1: Medical Debt

According to Debt, the first reason why people are pushed to file for bankruptcy is “medical debt from a catastrophic illness.” A Harvard study said that 62 percent of people filing for bankruptcy cited this as the cause. Families can be getting along just fine when cancer or some rare disease hits a family member or a car accident or an emergency operation suddenly creates substantial medical debt they could never anticipate.” While those in these situations generally have medical coverage, the deductible can be incredibly high or their plan may not cover the condition they’re currently facing. 

Reason #2: Loss of Income

Whether you have been working for your company for months, or you are a senior employee who has been there for years, you never think the time will come, especially without planning or prior warning, that you’ll get fired. Yet, in today’s economy with the issues we face today, unexpected loss of income isn’t only a possibility but a reality lived by many. Just in 2020 and in the years since, the COVID pandemic has left millions of people unemployed. People who had just purchased a new home, or made other significant investments counting on their income, hoping that another job would come by soon, were suddenly forced to file for bankruptcy, never thinking they’d ever have to go through something like that. 

Reason #3: Divorce

Just like no one ever expects to lose their job, no one ever plans for a divorce. If financial issues were present before the divorce, it’s more likely that those issues will arise during and after the divorce proceedings. If one of the divorce parties tries to sustain the same lifestyle they had prior to the divorce, financial issues are likely to arise. Court proceedings, alimony, child support and legal fees can all rack up too.

Reuters reports that “bankruptcy filings have started to increase this year and the number of new cases filed in March jumped significantly from February, but remain below last year’s numbers, according to data released on Tuesday by legal research firm Epiq.” To reach a bankruptcy attorney in Tulsa, Oklahoma who can help, call the Henson Law Firm or 800-672-3103.