Although bankruptcy is something that no one plans, the fact is that it happens and there are some common causes to look out for. William D. Schroeder, Jr., our Philadelphia bankruptcy lawyer, explores these factors to give you some insight into how you can try to avoid ever having to file for bankruptcy.
Credit
Given how easy it is to use a credit card, it is easy to understand how it could be a contributing factor to bankruptcy. Swiping your card to purchase the things that you want without feeling the immediate repercussions can be dangerous; if you max out your cards you could find yourself unable to keep up with the payments.
Job Loss
The economy can be unpredictable at times and with the fiscal struggle of the last few years, many people have found themselves without jobs despite having been employed by a company for years. Many people continue to be underemployed. With debts, bills to pay, and continued cost of living expenditures, losing your job can leave you with a level of expenses that becomes impossible to manage.
Medical Costs
When unexpected injury or illness occurs, medical expenses can accrue quickly. You have to take care of yourself and/or your loved ones in these situations, regardless of the long term costs. If the situation includes the need for an extended hospital stay or surgical procedures, you could end up with an unmanageable burden.
Unpredictable Expenses
We all have periods in our lives where expenses seem to come from everywhere at once. Although we typically get through these situations, sometimes the bills become so overwhelming that bankruptcy becomes the only option. These outlays can range from roof replacement to repairs for home damage due to natural disasters.
Divorce
Even when a divorce is amicable, there are expenses that are unexpected. New housing and separate household costs, alimony and child support, legal fees and other expenses that arise from a divorce may be overwhelming. When one spouse is unable to keep up with expenses, bankruptcy may be the end result. While alimony and child support are not governed by a bankruptcy ruling, a good attorney who knows all of the rules can help you achieve the best outcome possible.
Many factors can lead to situations in which people become overwhelmed with debt. The choice to file for bankruptcy is difficult, but it could be the right move in your situation. Our Philadelphia bankruptcy lawyer can make it an easier process. For more information or further questions, call William D. Schroeder, Jr. at 215-822-2728.