' What Causes Someone to File Bankruptcy? - Law Offices of Robert M. Geller, P.A.

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 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.


Video Testimonials

Tampa Bankruptcy Law Blog

How Do I Find a Bankruptcy Attorney in Clearwater?

If you're facing financial hardships and are considering bankruptcy in Clearwater, finding the right attorney can be a critical decision....
Read More

Should I Sell My Home to Get Out of Debt?

Debt is a common modern problem. Whether it's credit cards, student loans, or medical bills, debt can cripple even the...
Read More

What to Ask a Bankruptcy Lawyer

What should you ask a bankruptcy lawyer? Financial problems can be incredibly stressful. One option that many people turn to...
Read More

Is It Easy to File for Bankruptcy?

Bankruptcy is a legal process that allows individuals and businesses to eliminate or reorganize their debts. It offers relief to...
Read More

How to Stay Motivated to Pay Off Debt

If you are struggling with debt, you are not alone. The average American has tens of thousands of dollars in...
Read More

Can I Fire My Bankruptcy Attorney?

Filing for bankruptcy can be overwhelming. Your bankruptcy attorney plays a crucial role in navigating you through the process. Unfortunately,...
Read More

Am I Responsible for My Parent’s Credit Card Debt?

As we grow older, our parents also age. Sometimes they become dependent on us in many ways. Even if they...
Read More

How to Hide from Debt Collectors

There are many ways to “hide” from debt collectors. You can ignore their calls, not answer your door, or ask...
Read More

Is Your Spouse Responsible for Credit Card Debt in Florida?

Debt can be overwhelming, especially when you're not sure who is responsible for it. That's why it's important to understand...
Read More

What Happens If You Ignore a Debt Collector?

Debt can be overwhelming. It’s easy to let bills pile up and miss payments, and before you know it, you...
Read More


For The Next 5 Days GET A FREE BOOK About Bankruptcy

Learn More


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


Tampa Office

Law Offices of Robert M. Geller, P.A.
807 West Azeele Street
Tampa, FL 33606
T: (813) 254-5696
T: (800) 853-7549
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) 532-3939

Map And Directions

Pasco Office

23526 State Road 54
Lutz, FL 33559
T: (813) 336-2320

Map And Directions