Every year, more than one million people file for bankruptcy in the U.S. While they have different stories, they’ve all found the same solution to their financial troubles.
Let’s explore the most common reasons behind filing for bankruptcy. If you relate to any of them or think you’d benefit from taking this step, the best thing to do is consult with a reliable debt relief lawyer in San Diego.
Why do people most often claim bankruptcy?
Most people filing for bankruptcy are in serious debt. Here’s what most often leads them to this situation:
1. Medical expenses
Medical bills are notoriously expensive. Even if you have health insurance, they can pile up, especially if it’s an unexpected medical problem. On top of everything, you may have to take time off work and lose part or all of your income.
This may further lead to borrowing money from friends and family, taking out loans, and maxing out your credit cards, which just keeps you in the vicious circle.
2. Unemployment
Even post-Covid, job losses are common, especially considering the current economy. A company may go under or have to let some or most of its employees go or cut their pay to keep afloat. Then, you may struggle to find another job and/or cover your expenses.
3. Divorce
A divorce brings about various struggles. Aside from the obvious personal and emotional difficulties, financial ones are also frequent.
The divorce process itself is expensive. Also, the income gets divided, while debts stay and expenses may increase. If you and your ex-spouse have joint accounts, you may be responsible for their debt as well.
4. Mortgage
Home mortgages are one of the most common debts in the U.S. Not being able to pay off your mortgage often leads to foreclosure. So, instead of losing your home or going further into debt, filing for bankruptcy provides a way out.
5. Credit card debt
Credit card debt typically goes hand in hand with at least one more item on this list. One financial problem makes you turn to your credit card – to cover your medical expenses or essentials after losing your job. This way, you could get deeper into debt, especially with higher and higher interest rates.
6. Student loans
Once you get your college education, you may have to start paying off your student loans. With a saturated job market and high expenses, you might find yourself even further in debt you cannot keep up with.
7. Overdue bills
The cost of living is on the rise, including utilities. If you’ve lost a job or are struggling financially in other ways, then a pile of unpaid bills is certainly not helping.
8. Lending
In today’s tough times, you may have had to help out your friend or family member financially. Just this alone or coupled with other items on the list could create an overwhelming financial situation.
Which debt relief lawyer in San Diego can help you file for bankruptcy?
If you’re struggling in any of the ways listed above or having other problems and looking for financial freedom, the experienced attorneys at Bankruptcy Law Offices of Mark L. Miller are at your disposal.
We’ll provide you with professional legal representation and guide you through the whole process. If you have any questions, we’re here for you – whether you want to know more about the history of bankruptcy, you’re confused by some of the terms, or you’re curious about certain bankruptcy myths.
With our expertise-based assistance, you’ll get to the other side in no time. Let us take care of everything so that you can enjoy a relaxing time at the Old Town San Diego State Historic Park.
Schedule your consultation today!