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  • Writer's pictureNick Brown

What Can Make You Bankrupt In One Night?

Bankruptcy figures in the US are worrying. In the last few decades, there has been a dramatic increase in the number of people who are unable to pay their debts, and the Congress has addressed this issue with the law, which makes it difficult to qualify for this situation.Many people struggle with managing their money. Sometimes, just not enough to roam. In fact, millions of Americans filed for bankruptcy in these years. You can think that those who file for bankruptcy, they are irresponsible expenditures. This is definitely something, but in reality many people are not too expensive to spend. They are unable to answer the unfortunate incidents.None of us want bankruptcy to be with us. And yet, many people face sickness, job loss, divorce, and natural disasters every year and this reduces their finances. It is difficult to recover after this fact, but you can take steps now to reduce these financial calamities. Following is a list of the most common causes of bankruptcy in America today.



Medical Expenses

A study conducted at Harvard University indicates that this is the biggest cause of bankruptcy, which represents 62% of all personal bankruptcy. Shows an interesting caveat of this study is that there was some sort of health insurance 78% Failron, such as medical bills, furthering the myth that only affect illiterate.Rare or serious disease or thousands of dollars to hundreds of medical bills from injuries can easily find - bills that can wipe out savings and retirement accounts, college education funds and home equity quickly. After a time they finished, bankruptcy can only be the only shelter may be able to implement health coverage in some parts of the patient or his family bill.If People buy best mountain bikes then this mountain biking gives you lots of health benefits and you can save unexpected medical expenses.


Job Loss

Whether due to layoffs, termination or resignation, the loss of income from the job can be equally devastating. Some people are lucky enough to get a severance package, but many find pink slips on their desk or locker, with no prior notice. Not having an emergency fund only spoils the situation, and using a credit card to pay bills can be disastrous. The loss of insurance coverage and the cost of COBRA insurance also drains the already limited resources of the job seeker. Those who are unable to get similar beneficial employment for extended period of time, they can not be able to overcome the shortage of income at the time so that the creditors can be kept bay.


Poor/Excess Use of Credit

Some people just can not control their expenses. Credit card bills, installment loans, cars and other debt payments can eventually be out of control, as long as the borrower is unable to make the minimum payment even on each type of loan. If borrowers can not use money from friends or family or otherwise get a consolidation loan, bankruptcy is usually an inevitable option.People also spend lot of money on buying best golf balls and other products. This is also a reason of bankruptcy.Figures show that most debt-consolidation schemes fail due to various reasons, and usually only delay filing for most participants. However, in some cases, home-equity loans can be a good measure for unsecured loans, once it is finished, non-responsible borrowers can face foreclosure on their homes if they also make this payment. Are unable to.


Divorce/Separation

Marital dissolution creates tremendous financial strain on both partners in many ways. Take legal fees first, which can be celestial in some cases, then the split of marital property, decision of child support and / or alimony, and finally the ongoing cost of having two separate houses after partition. Legal costs alone are enough to force some to file, while wage garnishing or alimony to cover child support can snatch others' ability to pay their bills. Husband who fails to pay fixed support in the agreement often disappoints the other person completely.


Unexpected Expenses

Loss of property due to theft or accident, such as earthquake, flood or tornadoes for which the owner is not insured, can force some into bankruptcy. Many homeowners are unaware that they have to make separate coverage for some incidents like burglary, earthquake and other disaster.If you have proper home security systems to protect your home and property then it will save you from these disaster. Those who do not have coverage for this type of risk, they can not only cope with the loss of their homes, but also most or all of the assets. Not only will they have to pay to change these items, but they will have to find immediate food and shelter between them. Apart from this, those who lose their wardrobe in such a catastrophe, they can not take proper attire for their work, so that they may have to spend their work.

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