' What Causes Someone to File Bankruptcy? - Law Offices of Robert M. Geller, P.A.
CALL NOW!
FREE PHONE/VIRTUAL CONSULTATION

What Causes Someone to File Bankruptcy?

what causes someone to file for bankruptcyPeople file for bankruptcy for a variety of reasons. It’s an important decision to make and one that should not be taken lightly. Before deciding on this financial course of action, it’s important to understand what causes someone to file for bankruptcy in the first place.

What causes someone to file bankruptcy?

Medical Expenses

Medical expenses are one of the most common causes of bankruptcy in the United States.

In recent years, medical bills caused millions of Americans to file for bankruptcy protection. The American Journal of Public Health estimates that about 50 to 60 percent of all bankruptcies are related to medical bills or illness-related job loss. https://www.apha.org/AJPH

This is particularly true for Americans who lack health insurance coverage or have inadequate coverage that doesn’t fully cover their medical costs. Even if you have health insurance, there might be deductibles and co-pays that add up quickly and can lead to serious financial difficulty if you’re unable to pay them off promptly.

Job Loss or Underemployment

Another common cause of bankruptcy is job loss or underemployment.

Many people find themselves filing for bankruptcy after being laid off from their jobs due to downsizing or other economic factors outside their control. Job loss often leads to a decrease in income which makes it difficult, if not impossible, for people to continue paying their bills on time and maintain financial stability. If this happens, filing for bankruptcy may be the only way out from under crushing debt obligations.
Similarly, an individual may file for bankruptcy if they are underemployed. This means they are working fewer hours than usual or making less money than they need to pay their bills. It might be due to circumstances beyond their control such as a weak economy or changes in the job market.

Divorce

Divorce is another frequent cause of bankruptcy.

When a couple decides to end their marriage, one spouse may end up with more debt than they can handle. In some cases, a spouse enters the marriage with more debt or accumulates debt throughout the marriage. In other cases, it’s the divorce process that drives one or both spouses into crippling debt.

Filing for bankruptcy is a serious decision that should never be taken lightly. However, it might be the smartest decision when debt is affecting your everyday life.

If you’re struggling with unmanageable debt due to any of these reasons and considering filing for bankruptcy protection, it’s best to speak with an experienced legal professional. This way you can make an informed decision about how best to proceed given your unique set of circumstances. They can assess your specific situation and determine if another option might be better for you or if bankruptcy is the ideal way out of your situation.

For more information, contact the Law Offices of Robert M. Geller at 813-254-5696 to schedule a free consultation with an experienced attorney.

Archive

Video Testimonials

Tampa Bankruptcy Law Blog

When Does Bankruptcy’s Automatic Stay Go Into Effect?

Filing for bankruptcy can be a daunting experience, but it also provides vital protection for those in financial distress. One...
Read More

Should I Close My Bank Account Before Filing for Bankruptcy?

Filing for bankruptcy is a significant decision that requires careful planning. One common question people have during this process is...
Read More

Can Filing Bankruptcy Stop Repossession?

Facing repossession of your car or other valuable assets can be incredibly stressful. When you’re struggling to make ends meet,...
Read More

Are Bankruptcies Public Record?

When individuals or businesses find themselves in financial distress, they may consider bankruptcy as a way to manage or discharge...
Read More

How Can I Protect My Assets During Bankruptcy?

Filing for bankruptcy can be a challenging decision. Many people worry about losing their assets during the process. In Florida,...
Read More

Will My Landlord Know If I Filed for Bankruptcy?

Filing for bankruptcy can be a daunting decision. If you’re a tenant, you may worry about how this decision affects...
Read More

Should I File Bankruptcy without a Lawyer?

Filing for bankruptcy can be a daunting process. Many people wonder if they should tackle it alone or hire a...
Read More

How Does Bankruptcy Affect My Credit Score?

Filing for bankruptcy is a significant decision. It can have a lasting impact on your financial future, especially your credit...
Read More

Can You File Bankruptcy on a Title Loan?

If you're struggling with debt and have a title loan, you may wonder if bankruptcy can help you escape that...
Read More

Will Bankruptcy Affect My Security Clearance?

When you're facing financial difficulties, the prospect of bankruptcy can be daunting. This concern is amplified if you hold or...
Read More

Bankruptcy

For The Next 5 Days GET A FREE BOOK About Bankruptcy

Learn More

Infographics

We are A Debt Relief Agency.
We help people file for bankruptcy under the Bankruptcy Code

Pay Online Bankruptcy Courses Newsletter Subscription

Call For A Free Initial Consultation

813.536.4468

Tampa Office

Law Offices of Robert M. Geller, P.A.
807 West Azeele Street
Tampa, FL 33606
T: (813) 328-6667
F: (813) 253-3405

Map And Directions

St. Petersburg Office

Law Offices of Robert M. Geller, P.A.
125 5th Street South
(Wells Fargo Financial Center)
2nd Floor, Suite G
St. Petersburg, FL 33701
T: (727) 274-9155

Map And Directions

Pasco Office

23526 State Road 54
Lutz, FL 33559
T: (813) 492-2663

Map And Directions