Common reasons people file for bankruptcy

On Behalf of | Jun 27, 2023 | Bankruptcy, Personal Bankruptcy |

Life is unpredictable, and many people will experience a period of financial struggles at some point during their lives. For some, these struggles are insurmountable, and they are not able to manage their financial obligations on their own. This can lead to an accumulation of debt, interest that continues to pile on and other complications that make it difficult for a person to get ahead. For many, this leads to the need to seek bankruptcy protection.

The reasons to seek bankruptcy protection are personal and specific to the individual situation. However, most people make this decision based on their need to deal with debt, seek relief from creditors and debt collectors, and establish a better and stronger financial future. If you are considering this step for yourself, you are not alone, and you may find that this is the best option for your long-term goals. 

Financial struggles and common issues 

You are not the first person to struggle with debt. In fact, most Americans have debt, and many struggle to make monthly payments. While each situation is different, the following are common situations that often lead to debt accumulation and other financial issues that may compel one to explore the benefits of bankruptcy: 

  • Medical bills — Most people are financially unprepared for a medical emergency or long-term sickness. Medical bills can be astronomical and ongoing, even if the sick individual or family has insurance coverage. 
  • Loss of income — When a person loses his or her job, it can create financial stress that may lead to late payments, reliance on credit cards and other complications. Ultimately, this can lead to significant debt. 
  • Overspending — A common source of debt and financial struggles is living beyond one’s means, often using credit cards to pay for daily expenses and more. This spending can quickly add up, often before a consumer realizes it’s happening. 

These are only a few of the most common reasons why people consider bankruptcy. If you think this could be the best option for you, you may benefit from seeking an assessment of your case to better understand the specific options that are available. Bankruptcy could provide you a way to deal with certain balances once and for all, achieving a better financial future for you and your Tennessee family. 


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