Common Financial Strains That Can Lead to Bankruptcy
If you are struggling with debt, it is safe to say that those problems started with one or more financial issues. For most people, ending up in a position where avoiding creditors has become the norm is not a choice.
An unfortunate set of circumstances is all it takes to leave a debtor unable to pay bills. There are several common reasons that these issues may lead to bankruptcy. However, personal debt is often a complex issue, so the list is not exhaustive.
An accident or the onset of illness can lead to crippling medical debts. There is only so much that insurance will cover, leaving debtors to foot the remaining cost. When there is no money left to cover medical bills, debtors may turn to Chapter 7 bankruptcy for relief.
Credit Card Bills
Credit cards can provide a safety net when individuals or families are hit with unexpected bills or other costs. Using credit cards can become a problem when payments are missed or spending limits are abused. It is very easy to slip into credit card debt from which you have no way to recover in these situations.
If you are expecting a wage increase that never materializes, it can result in debt. In many cases, individuals will spend money based on expected future income. Another issue that can arise is job loss, which leaves debtors unable to pay monthly bills.
Separation or Divorce
Two people pooling debts is typically more manageable than dealing with the same bills as an individual. If you are obligated to pay alimony or child support after a separation or divorce, the extra costs may become financially burdensome.
For advice on Chapter 7, Chapter 13 or any other topic related to bankruptcy, call the offices of Gingold & Gingold today. We can provide guidance and representation to debtors in Georgia.