People rarely file bankruptcy just because they spent too much

Even though the stigma surrounding bankruptcy filing seems to have diminished as time goes on, there is still a lingering impression that a Tennessee resident who files for bankruptcy does so because he or she simply spent too much money either through carelessness, or, in the worst case, with no intention of ever paying the money back.

However, of recent years, excessive spending or mismanaging one’s ability to obtain credit are just one of many common reasons why people file for bankruptcy protection. Other big reasons people file for bankruptcy are often things beyond their control.

For example, although previous blog posts have reported this seems to be getting better, big medical bills, especially if they are not expected, can ruin a family’s finances and require them to file for bankruptcy protection. Likewise, many people are doing just fine financially for so long as they hold a steady job, but long-term unemployment that was not planned for can leave a family unable to pay their bills.

Another thing that Tennesseans might not consider is the profound impact divorce has the finances of each former spouse. Each person will likely leave a marriage with about half of their wealth and a lot less earning power. These new circumstances can lead to serious difficulties when a person goes to pay his or her bills.

Finally, sometimes, disaster or tragedy strikes, and there is just not adequate insurance to cover one’s losses. Unfortunately, creditors will not wait forever for a family to get back on its feet even after a disaster that was completely accidental. No one in Bradley County who is struggling financially should feel ashamed to explore bankruptcy as an option.

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