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Beyond Covid, what are other causes of bankruptcy

Beyond Covid, what are other causes of bankruptcy

Slowly, economies around the world are recovering from the impact of Covid-19. While this virus ravaged at its peak, many people lost their loved ones, some were separated from their loved ones, others lost their jobs.

People experienced various psychological and economic setbacks with Covid. If you find yourself in a terrible economic situation due to covid or other reason, maybe it is time you consult a bankruptcy lawyer at The Pope Firm.

Prior to covid 19 and even after this virus is eventually exterminated, people will continue to file for bankruptcy. It is inevitable for some people to find themselves in tight financial consdiitons.

Here is why I will be sharing with you the common causes of bankruptcy.

  • Divorce: Yeah! Perhaps you read the news of the divorce that is about to happen between Bill and Melinda but that’s not where I am headed. Did you hear how much Melinda will walk away from the marriage? That’s quite a lot right?.

Marriages termination leave a dent on our psychology welfare if one is not careful and perhaps you are not Bill and don’t have much money after splitting with your spouse, settling your debts may become a very difficult thing to do. You may consider getting in contact with a bankruptcy attorney to see if filing for bankruptcy is right for you.

  • Medical Problems: serious medical conditions can wipe away your savings in  the blink of an eye and did you mention health insurance? There are caveats to what insurance can do in some situations and this can lead one into serious financial trouble.

With a serious medical condition you may be unable to work. Hence, no income to settle your bills that culmilate to hundreds of thousands of dollars in certain situations.

According to a study issued in the American Journal of Public Health in 2019, findings reveal that about 66.5% of bankruptcies in the United States were due to medical issues like being unable to pay high bills or due to time lost from work.

  • In the bid to avoid foreclosure on one’s property, people may file for bankruptcy. Foreclosure simply means the repossession of a property when a borrower fails to pay their mortgage payments, it can also happen wwhen a homeowner fails to pay their property taxes or homeowners association fee.

 

  • Job loss: A recent case of how unexpected job losses can push one to the brink of bankruptcy can be deduced from how companies laid off workers while the world was on lockdown due to Covid pandemic. While some were lucky enough to receive severance packages other were not so lucky if perhaps the entire company fails and files for bankruptcy itself.

Having an emergency fund helps in this situation but what if you don’t have one? With serious debt piled up, you may want to consider filing bankruptcy. But first seek the advice of a bankruptcy lawyer.

  • Bankruptcy is inevitable for someone with frivolous spending habits. Maxing your credit card, taking on loans without solid reasons, buying stuff on credit are some of the finance mismanagement habits that can lead you to bankruptcy. Another loan that can make you bankruot is college loan, don’t take college loans unless you are informed of the consequences. Be wise with budgeting!

 

  • The growing inflation affects almost if not all aprt of our individual lives. This relfects in home expenses like lightning, water, heating and so on, many people can find themselves filing for bankruptcy if paying this bills spiral out of control.

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