Top Three Reasons for Bankruptcy Filings

Top Three Reasons for Bankruptcy FilingsTop Three Reasons for Bankruptcy FilingsBankruptcy Does not Only Happen to Bad People

Bankruptcy comes with a certain stigma. No one wants anything to do with that word.

They avoid it like the plague.

It’s an ugly word. It’s an ugly place to be.

I agree.

BUT it doesn’t necessarily mean that people who are in this predicament are bad people. Contrary to what you may think, the people that we have personally helped through this process are intelligent, hardworking, and more importantly, people just like you and me.

They are bankers, financial advisors, teachers, firemen, lawyers, grandparents ….well you get the picture. I have met the most caring, intelligent, and intuitive people through conversations with my clients. Their stories are astounding.

So why are they in this predicament? I have one word for you. <LIFE>

Top Three Reasons for Bankruptcy Filings:

Health: Your health is everything. Unfortunately, you don’t always have control over your health. With the wrong turn, you may be looking at missing months of work therefore resulting in losing your job. Furthermore, you are incurring thousands and thousands of medical bills that you did not anticipate in your budget. Have you looked into how much it costs to get a simple blood work done in the hospital lately? Between $500-$700 lab fee- Ouch. Now imagine escalating that to months in the hospital due to something you just can’t plan for and cannot control.

Divorce: The second most popular reason why people file bankruptcy is divorce. Money is one of the biggest stresses in a marriage. After a difficult divorce proceeding, the reality hits you that your ex-spouse’s debt is now also your debt. For better or worse, the joint debts follow you, especially the secured joint debts. If all of your debts are in fact joint debts, it would be wise to file a joint bankruptcy petition to discharge these debts before the divorce. Having to split marital debt in family court can get ugly and expensive really quickly. If your debts are primarily not joint, you should discuss your options with an attorney.

Loss of Job:I think each one of us can name at least five people we know that have lost their job in the last couple of years. With the downfall of the economy, many families have been victims of the job crisis. When you have relied on your steady income to support your family, it is difficult to maintain the ability to pay for your bills going forward. When months turn into years of being unemployed, you find your bills snowballing faster than you could ever imagine. Even if you do get a job down the road, recovering from loss of income can be detrimental.

Bankruptcy does not just happen to bad people. It can happen to any one of us. At the Lam Law Firm, we have met with client from all walks of life. Any lawyer can get rid of your debt, but here, we care enough to get rid of your stress as well.

Lam Law Firm, LLC •1335 44th Ave North • Suite 100 • Myrtle Beach, SC 29577

DISCLAIMER: The information contained on this page is for general information, only. It is not intended to be legal advice, nor should you make legal decisions based on this information. Please consult one of our attorneys to see how the law applies to your particular situation.