Chapter 13 Bankruptcy and Chapter 7 Bankruptcy has been a growing trend in the United States over the past few years. There are many reasons that families are turning to this option for debt relief. There are many different triggers that can bring about a bankruptcy.
Top 4 Causes for Bankruptcy in the United States:
- Divorce – Going through a divorce can be one of the worst times in a person’s life and it results in a lot of emotional stress. On top of that the divorcee will have to get used to only having one income to draw upon. Often times it is easier to file for bankruptcy and come out of it with a clean foundation to build a new life on.
- Job loss – A lot of workers are essentially living in a house of cards. As long as the paychecks keep coming and there are no unforeseen emergencies then life goes on. But without a safety net to fall back on, the loss of a job can cause a ripple effect. Even in the case of a two income household, a lot of families cannot cope with a job loss.
- Medical bills – By far the biggest reason to file for bankruptcy. A few studies have shown that up to two million people list medical bills as their reasons for filing every year. Filing for Chapter 7 or Chapter 13 can eliminate or consolidate the debts, making it easier to deal with.
- Abuse of credit – Some consumers cannot help themselves from trying to live outside their means. They use high interest credit cards to purchase luxuries, pay bills, or even pay off other credit cards. This behavior soon puts them into a situation where the only possible remedy is to file.
Filing for bankruptcy is a great option for many needing relief from overwhelming debts. Call an experienced Atlanta bankruptcy attorney today to find out how this option can help you.